Total
0
Shares
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Cochlear (COH) experienced a 4 per cent decrease in sales revenue for H1 FY21 of $742.8 million
  • Underlying net profit was down 6 per cent to $125.3 million, but statutory net profit was up 50 per cent to $236.2 million
  • This increase was primarily due to the innovation fund gains and COVID government assistance
  • However, Cochlear will be repaying the government assistance due to improved trading conditions
  • Cochlear implants decreased eight per cent to 17,377, with total sales revenue decreasing four per cent over the previous corresponding period to $742.8 million
  • Trading has returned to pre-COVID levels across multiple countries but has decreased across Western Europe where restrictions are still in place
  • For the full 2021 financial year, Cochlear expects to deliver underlying net profit between $225 million to $245 million
  • Additionally, due to the rollout of COVID vaccines, the company expects to undertake surgeries that were previously delayed
  • Cochlear has ended the day 8.4 per cent in the green with shares trading at $221.68

Cochlear (COH) experienced a 4 per cent decrease in sales revenue for H1 FY21 of $742.8 million.

Earnings before interest and tax was also down 4 per cent over the prior corresponding period (pcp) to $175.6 million.

Underlying net profit was down six per cent to $125.3 million, but statutory net profit was up 50 per cent to $236.2 million.

This increase was primarily due to the innovation fund gains and COVID government assistance.

Implants

Cochlear implants decreased eight per cent to 17,377, with total sales revenue decreasing four per cent over the pcp to $742.8 million.

Despite Cochlear believing that there would be some hesitation in resuming surgeries, the amount of people undergoing surgery has returned to pre-COVID levels across most countries.

Strong growth was achieved across the U.S., Japan and Korea, where clinics generally operated at pre-COVID levels for most of the half.

Growth was driven by rescheduled surgeries, market growth and market gains.

There was a small decline in unit sales across Western Europe.

Momentum grew quickly until the end of October, however, it decreased across November and December due to increasing COVID-19 infections and government lockdowns.

Across Australia, cochlear implant volumes were in line with last year despite the lockdown in Victoria for most of the half.

COVID-19 government assistance

Due to improved trading conditions, Cochlear has decided to repay the $24.6 million it received in COVID government assistance.

While there is still uncertainty about the future, the COVID payment has been classified as a one-off with funds to be repaid this half.

Outlook

For the full 2021 financial year, Cochlear expects to deliver underlying net profit between $225 million to $245 million, a 46 to 49 per cent increase over FY20.

As COVID vaccines begin to be rolled out across the globe, Cochlear expects to undertake surgeries that were previously delayed.

Cochlear has ended the day 8.4 per cent in the green with shares trading at $221.68 in a $13.44 billion market cap.

COH by the numbers
More From The Market Herald

" ASIC sues ANZ (ASX:ANZ) for credit law breaches under home loan introduction program

Australia’s corporate watchdog is suing big-four bank ANZ (ANZ) for breaching the Credit Act through its “introducer” program that resulted in some $18.5...

" AMP (ASX:AMP) flags $325m impairment ahead of demerger

Wealth management giant AMP (AMP) has opened the trading day red after announcing another $325 million in impairment charges ahead of its AMP
EML Payments (ASX:EML) - Non Executive Chairman, Peter Martin

" EML Payments (ASX:EML) shares spike on Irish regulatory respite

The EML Payments (EML) share price has spiked today after the company announced some long-awaited good news for its embattled Irish subsidiary, PFS

" Viva Energy (ASX:VEA) announces 2030 net-zero emission goals

Viva Energy (VEA) has announced 2030 net-zero emission goals for scopes one and two with a 10 per cent reduction for scope three.