- Medical tech company Nanosonics (NAN) was able to boost full-year revenue over the 2020 financial year despite a tough fourth quarter
- While the first three quarters of the 2020 financial year were strong, revenue in the fourth quarter slipped, resulting in a slight fall in full-year profit
- Nanosonics made $10.1 million in net profit after tax for the 2020 financial year compared to $13.6 million the year before
- Nevertheless, full-year revenue was still 19 per cent higher than the year before
- However, CEO Michael Kavanagh said the coronavirus will likely cause some delays to future product commercialisation
- Shares in Nanasonics are currently 8.59 per cent lower and worth $6.28 this morning
Medical tech company Nanosonics (NAN) was able to boost full-year revenue over the 2020 financial year despite a tough fourth quarter.
The company’s operations were tracking along nicely until COVID-19 struck and business tumbled. Still, Nanosonics’ full-year revenue came in 19 per cent higher than the 2019 financial year at $100.1 million.
Over the first three quarters of the year, total revenue was 26 per cent higher than the year before, but flat revenue in the fourth quarter softened this number.
In light of this, Nanosonics’ net profit after tax came in slightly lower than last year at $10.1 million for the 2020 financial year. Over FY19, the company’s net profit after tax was $13.6 million.
Nanosonics CEO Michael Kavanagh said hospital department shutdowns due to the coronavirus were a major catalyst for the difficult fourth quarter.
“In reviewing the year it is important to not only look at the overall results for the year but to review the achievements in the Q1 to Q3 period separately to Q4,” Michael said.
Still, the company’s FY20 fourth quarter was largely flat on the fourth quarter of the previous year despite the COVID-109 challenges. Total fourth-quarter revenue was one per cent higher over the 2020 financial year than the year before.
“Despite the ongoing uncertainties associated with the current COVID-19 pandemic, the fundamentals for the underlying business remain strong,” he said.
However, Michael admitted that due to COVID-19 uncertainty, there will be a delay in new products from the company. Nanosonics was initially planning on commercialising new technology during the 2021 financial year, but told shareholders this morning this will likely be pushed back to FY22.
As far as its outlook for 2021 goes, Nanosonic said there is still too much uncertainty from the coronavirus to provide a specific guidance for the current financial year.
Nevertheless, the company said its infrastructure and cash balance provides a strong foundation for the future once the pandemic ends. Nanosonics had $91.8 million on hand at the end of June,
Despite three strong 2020 quarters, it seems investors couldn’t look past the final quarter of the financial year this morning. Nanosonics shares are currently down 8.59 per cent and worth $6.28.