Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Hearing aid producer Cochlear’s profit is up 13 per cent for the 2019 financial year, totalling $276.7 million
  • The services business flourished more than the cochlear implant sales, which took a 3 per cent hit
  • Cochlear’s share price is up 4.70 per cent today, currently sitting at $211.00 per share

Hearing aid producer Cochlear has seen its profits rise 13 per cent during the 2019 financial year.

Earnings before interest and tax is up 6 per cent on the previous year, totalling $370.1 million, and profit came in at $276.7 million.

Sales revenue also saw an increase over the past year. However, the number of cochlear implants sold took a 3 per cent hit.

CEO and President of Cochlear Dig Howitt said strong growth in the services business, despite the slower year for implant system sales, was the highlight of the 2019 financial year

“The services business continues to grow in importance as our recipient base grows, now representing 30 per cent of sales revenue. In the 2019 financial year, services benefitted from the continued strong uptake of the Nucleus 7 Sound Processor,” Dig continued.

In the Middle East, Eastern Europe, and Japan, sales saw strong growth. However, in Argentina and Turkey, sales dropped significantly due to recession and currency devaluation, according to Cochlear.

Initially, sales were down in the U.S. and Germany due to the release of a competitor’s product, but this changed once Cochlear released its Nucleus Profile Plus Series cochlear implant in the two countries.

Cochlear spends 12 per cent of sales revenue on research and development each year, which allows the company to pump out new products.

“We have an exciting portfolio of products to be launched over the next 18 months,” Dig said.

The market has responded favourably to Cochlear’s earnings, with the company’s share price up 4.70 per cent today. It’s share price is now worth $211.00 apiece.

COH by the numbers
More From The Market Herald
Carsales (ASX:CAR) - Managing Director and CEO, Cameron McIntyre

" Carsales.com (ASX:CAR) raises $842m for Trader Interactive acquisition

Carsales.com (ASX:CAR) has raised $842 million from its institutional entitlement offer to help fund its acquisition…
The Market Herald Video

" Pilbara Minerals (ASX:PLS) set to increase production at Pilgangoora

Pilbara Minerals (ASX:PLS) is set to increase spodumene production at its Pilgangoora operation to 680,000 dry…
The Market Herald Video

" Liontown Resources (ASX:LTR) lands offtake agreement with Ford, reaches FID decision

Liontown Resources (ASX:LTR) has executed a binding offtake agreement and funding facility with global automaker, Ford.
The Market Herald Video

" Northern Star Resources (ASX:NST) looks to expand Kalgoorlie Super Pit

Gold miners Northern Star Resources (ASX:NST) flags potential to spend up to $1.4 billion to expand…