Cochlear Limited (ASX:COH) Announces Half-Year 2024 Financial Results
Financial Performance
Cochlear Limited reported a 5% increase in sales revenue to $1,170 million for the half year ended December 2024, reaching $1,169.9 million. Underlying net profit rose by 7% to $206 million, maintaining an 18% net profit margin. The company’s gross margin remained steady at 75%, and operating expenses grew by 10% to $614.4 million. Strong balance sheet and cash flow generation supported an 8% increase in the interim dividend to $2.15 per share.
Operational Achievements
The increase in revenue was driven by a 13% rise in cochlear implant revenue and a 22% growth in acoustics revenue, offset by a 12% decline in services revenue. Cochlear implant units grew by 5% to 25,390, supported by a higher mix of private pay units in emerging markets. Acoustics revenue benefited from the strong uptake of the Cochlear™ Osia® Implant and geographic expansion into new countries. The company is preparing to release next-generation cochlear implants and the Nucleus® Kanso® 3 Sound Processor from mid-2025, subject to regulatory approvals.
Future Outlook
For FY25, Cochlear expects underlying net profit to be at the lower end of the $410-430 million guidance range, considering lower services revenue and increased cloud-related investments. The company aims to help over 50,000 people hear with cochlear or acoustic implants and anticipates continued market growth and strategic investments in R&D and market expansion.
Dividends
An interim dividend of $2.15 per share was declared, an 8% increase from the previous year, representing a payout of 68% of underlying net profit. The dividend is franked at 80%, with the ex-dividend date set for 20 March 2025 and payment expected on 14 April 2025.
Motley Fool contributor Matt Burgess has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Cochlear. The Motley Fool Australia has recommended Cochlear. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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