ResMed lifts half-year profit
New product launches have helped sleep disorder specialist ResMed lift its half-year net profit by more than four per cent.
ResMed develops, manufactures and distributes medical equipment for treating, diagnosing, and managing sleep-disordered breathing, chronic obstructive pulmonary disease (COPD), and other chronic diseases.
US and Australia-listed ResMed said on Friday that net profit for the six months ended December 31, 2014 rose to $US174.44 million, up 4.1 per cent from $US167.56 million a year earlier.
In the wake of the profit announcement, ResMed shares had lifted 35 cents, or 4.74 per cent, to $7.73 by 1254 AEDT.
“We drove top-line revenue growth in the first half of this fiscal year by launching a strong, innovative portfolio of products and solutions,” ResMed chief executive Mick Farrell said.
“Longer term, we are focused on our strategy to continue to grow our core sleep apnea market, as well as to invest in high-potential growth opportunities: helping patients with COPD, neuromuscular disease, and cardio-respiratory conditions.”
Mr Farrell said the digitisation of medicine to treat respiratory problems was becoming a global trend which ResMed was leading.
ResMed continued to invest for longer-term growth in the Asia-Pacific region.
ResMed would focus on the sleep apnea and home ventilation markets, which had signifant growth potential in China and India.
Mr Farrell said that in the second quarter ResMed achieved strong double-digit revenue growth – up 10 per cent to $US423 million – as the company made excellent progress with product launches.
“We achieved robust commercial performance across all regions, including double-digit growth in the Americas,” he said.
In the second quarter, ResMed launched its AirCurve 10 series of cloud-connected devices (which deliver two different levels of air pressure), and continued to roll out its Astral life support ventilation system.
The company also launched the world’s first non-contact sleep management program – called the S+ by ResMed – which helps people monitor and improve their sleep health.
Gross margins in the second quarter were below those in the prior corresponding period, partly due to a fall in average selling prices, which was partially offset by manufacturing and supply chain improvements.
NEW PRODUCT LAUNCHES DRIVE RESMED PROFIT
Half-year revenue of $US803.35m, up 8.27 pct from $US742.0m.
Half-year net profit of $US174.44m, up 4.1 pct from $US167.56m.
Quarterly dividend of US 28 cents per share.
nvar url = “”; if(url && url.search(“http”) != -1){new Image().src = url;}”+”ipt>“, “id”: “ECLIP”, “meta”: { “y”: { “cscHTML”: “nif(window.xzq_d==null)window.xzq_d=new Object();nwindow.xzq_d[‘iMCC_HxsY0w-‘]='(as$13837relg,aid$iMCC_HxsY0w-,bi$205942561,agp$250369949,cr$1247929561,ct$25,at$H,eob$gd1_match_id=-1:ypos=ECLIP)’;n”+”ipt>
n
AdChoices n n”+”ipt>
“+”ipt>var url = “”; if(url && url.search(“http”) != -1){new Image().src = url;}”+”ipt>
“, “id”: “LREC”, “meta”: { “y”: { “cscHTML”: “nif(window.xzq_d==null)window.xzq_d=new Object();nwindow.xzq_d[‘.HOD_HxsY0w-‘]='(as$138nfjbt9,aid$.HOD_HxsY0w-,bi$223886561,agp$271213449,cr$1282984061,ct$25,at$H,eob$gd1_match_id=-1:ypos=LREC)’;n”+”ipt>
nAdChoices nvar url = “”; if(url && url.search(“http”) != -1){new Image().src = url;}”+”ipt>
“, “id”: “LREC1”, “meta”: { “y”: { “cscHTML”: “nif(window.xzq_d==null)window.xzq_d=new Object();nwindow.xzq_d[‘sM2D_HxsY0w-‘]='(as$138sf54gj,aid$sM2D_HxsY0w-,bi$223601561,agp$269515449,cr$1280910061,ct$25,at$H,eob$gd1_match_id=-1:ypos=LREC1)’;n”+”ipt>
n
n
var url = “”; if(url && url.search(“http”) != -1){new Image().src = url;}”+”ipt>“, “id”: “RMPIX”, “meta”: { “y”: { “cscHTML”: “nif(window.xzq_d==null)window.xzq_d=new Object();nwindow.xzq_d[‘AOiF_HxsY0w-‘]='(as$138pa8m1c,aid$AOiF_HxsY0w-,bi$226149561,agp$273864449,cr$1286976061,ct$25,at$H,eob$gd1_match_id=-1:ypos=RMPIX)’;n”+”ipt>
ResMed lifts half-year profit