Cochlear (COH) H2 2024 earnings summary

Executive summary

• Helped over 47,000 people hear with implants, creating over AUD 8 billion in societal value.

• Record FY24 sales revenue of AUD 2.258 billion, up 15% (12% in constant currency) year-over-year, with strong growth across all business units.

• Underlying net profit rose 27% to AUD 387 million; statutory net profit increased 19% to AUD 357 million.

• Completed Oticon Medical acquisition, integrating 20,000 new customers and incurring AUD 28 million in integration costs.

• Maintained employee engagement at 80% and filled 1,000 external and 400 internal roles.

Financial highlights

• Revenue reached AUD 2.258 billion, up 15% year-over-year; cochlear implant units up 9% to 48,040.

• Statutory profit up 19% to AUD 357 million, with adjusted profit up 27% to AUD 387 million.

• Gross margin at 75%, slightly above expectations; underlying net profit margin at 17% (18% pre-cloud investment).

• Dividend increased 24% to AUD 4.10 per share; final dividend up 20% to AUD 2.10 per share.

• Net cash position of AUD 514 million, with AUD 43 million spent on share buybacks.

Outlook and guidance

• FY25 underlying net profit guidance of AUD 410–430 million, a 6–11% increase.

• Targeting 10% long-term sales revenue growth and 18% pre-cloud margin.

• Expecting to help over 50,000 people hear in FY25; cochlear implant unit growth of ~10% anticipated.

• Services growth expected to slow, while Osia segment anticipates strong growth.

• CapEx to remain elevated at AUD 100–130 million for capacity expansion.