The Australian hearing aid giant reported profits of $144.9 million, or $2.54 per share, on sales of $888.6 million for the full 2016 fiscal year. That amounts to a 29.6% bottom-line gain as sales grew 23% compared with the pervious fiscal year.
Shares dipped down 2.8%, closing at $125 the day it released the earnings.
“The positive momentum we saw in FY15 has continued throughout FY16 with strong growth delivered across all product categories and regions. The business achieved a major milestone with sales revenue increasing by 23% (12% in constant currency) to $1.158 billion, exceeding $1 billion for the first time. The cochlear implant business delivered revenue growth of 21% (10% in constant currency) and unit growth of 12%. Our leading developed markets, including the United States, the United Kingdom, Germany and Australia, each grew implant units by around 10%. Emerging markets performed well with highlights including China, both in the private pay and tender market, India and the Middle East. We have strengthened our market-leading position with the success of a suite of product releases made over the past 18 months. In FY16 we introduced Cochlear’s first off-the-ear sound processor Cochlear Kanso; expanded the bone conduction portfolio with Baha 5 Power and SuperPower sound processors; introduced the Nucleus Profile Slim Modiolar electrode, the world’s slimmest electrode and launched the next generation True Wireless Mini Microphone 2+,” CEO Chris Smith said in a press release.
The company released guidance for the upcoming year, expecting to see net profit between $161.1 million and $172.6 million, up 10-20% from this year.
Cochlear’s shares have climbed more than 34% so far this year amid a broad rally in health stocks as investors look for defensive plays and make bets on the needs of Australia’s aging population.
Material from Reuters was used in this report.