Cochlear Profit Rises 22%

Submitted by Share Trading on 10 February, 2009 - 16:35

Cochlear (COH) has announced in the 1H report that the company’s profit has increased by 22%. The company said it saw 15-20 core earnings growth in the full year. Cochlear posted a first half net profit of $69.9 million, up 22 per cent on the same six months a year ago, as revenue jumped 19 per cent to $355.2 million.

The U.S. currency averaged 77.9 cents per Australian dollar in the period, 11 percent more than a year earlier, and the euro averaged 55 cents per Aussie, 12 percent more. The group had previously said it expects double-digit growth in its core earnings this year, with profit skewed to the second half of the year. COH said, “Cochlear continues to advance during this period of uncertainty by adhering to a strategy of broad-based growth within the implantable hearing device space”.

Cochlear chief executive Chris Roberts said the result showed the strength of the company in the face of a challenging market environment around the world. Cochlear declared a first half dividend of 80 cents, a 14 per cent increase on the dividend for the same half a year ago. Roberts said, “This is a strong result, confirming our strategy of diversifying our growth drivers within the implantable hearing space”. He also added that, “Cochlear is well positioned in this time of significant global uncertainty, and our fundamental strategies around technological innovation, business model innovation and development of internal capability, such as scale and leverage, have not changed”.

The company said, “Cochlear anticipates 15% to 20% growth in core earnings for the full year”. Cochlear shares have fallen 0.9 percent over the past month, outperforming a 6 percent fall in the broader market, like other health care companies, as they are seen as recession-proof. Sales, excluding foreign exchange contracts, rose 22 per cent to $346.9 million. In constant currency terms however, sales grew 12 per cent, taking into account the effect of the weaker Australian dollar against the US dollar and other foreign currencies. Cochlear has revealed that long term growth initiatives were further advanced, with the controlled market launch of the new Hybrid system in Europe.