Join our daily newsletter At The Bell to receive exclusive market insights
- 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.
