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ResMed’s sleep apnea masks boost global sales

ASX 200
ASX:RMD      MCAP $19.55B
24 October 2019 22:02 (AEST)

Sleep apnea specialist ResMed has added $2.05 dollars to its share price today, bringing the ASX 200-lister to $20.65 apiece.

The significant boost comes as the medi-tech company released its quarter one results for the 2020 financial year, recording a 16 per cent boost to its revenue, which came in at $681.1 million.

“Our global ResMed team delivered another quarter of strong performance in the first quarter of fiscal year 2020 with double-digit topline revenue growth,” ResMed’s CEO, Mick Farrell, said.

Throughout the U.S., Canada, and Latin America, revenue grew by 13 per cent on the back of mask and device product sales. Mask sales are the predominate factor for revenue increase in Europe and Asia, which is up eight per cent on the previous year.

Mick detailed there was a strong customer demand for the company’s new products, including new sleep apnea masks, throughout the quarter.

The company’s software-as-a-service (SaaS) revenue also saw a significant increase, up 83 per cent in comparison to this time last year.

“Through organic growth and targeted acquisitions, we’re driving forward every facet of our business, leading the innovation of devices and software that improve health outcomes, create efficiencies, and reduce overall healthcare system costs,” Mick said.

As revenue continues to grow, the company’s profits for the quarter also rose by 19 per cent.

It is expected by 2025 the company will be providing its products and services to 250 million people both in and out of hospital care.

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