Cochlear reports growth in implant units and revenue for FY24

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Cochlear Nucleus 8 Sound Processor. Image credit: Cochlear Limited

Cochlear, a global leader in hearing solutions, announced impressive results for the fiscal year 2024, marked by substantial increases in cochlear implant units and sales revenue across various markets.

The ASX-listed company’s annual report indicates a 14 per cent surge in cochlear implant units, reaching a total of 24,193 units, accompanied by a notable 26 per cent growth in sales revenue, totalling $648.5 million.

The robust performance was observed across both developed and emerging markets, with developed market units experiencing a 15 per cent growth, driven by the successful launch of the Nucleus 8 Sound Processor and a surge in market share.

Notably, cochlear implant growth transcended age segments, encompassing children, adults, and seniors, indicative of Cochlear’s expanding reach and impact.

Emerging markets also demonstrated significant progress, with a commendable 10 per cent increase in units, propelled by strong growth in countries such as China, India, Central Europe, and the Middle East.

In addition to cochlear implants, Cochlear’s services segment exhibited a remarkable uptick, with revenue soaring by 35 per cent to $348.9 million, reflecting growing adoption rates of the new sound processor across developed markets and increasing rates of sound processor upgrade penetration in emerging markets.

However, the acoustics segment experienced a slight downturn, with revenue declining by four per cent to $116.0 million, attributed to lower demand for Cochlear Baha 6 Max Sound Processors.

Nevertheless, the recent launch of the Cochlear Osia 2 System in the US has shown promising demand since its introduction in December.

Financially, Cochlear delivered robust sales revenue of $1,113 million, marking a substantial 25 per cent increase, driven by strong growth in cochlear implants and sound processor upgrades.

Despite a marginal decline in gross margin to 74 per cent, primarily due to inventory write-downs and production commencement at Chengdu, Cochlear’s underlying net profit surged by 35 per cent to $192 million.

Looking ahead, Cochlear remains optimistic about its growth prospects, forecasting an underlying net profit guidance of $385-400 million for FY24, representing a significant 26-31 per cent increase from the previous fiscal year.

The company said it anticipates continued growth momentum in cochlear implant units, driven by robust trading conditions and an anticipated 10-15 per cent growth rate.

Moreover, Cochlear reaffirms its commitment to long-term market expansion through sustained investments in research and development (R&D) and market growth activities, with an expected investment of around 12 per cent of sales revenue in R&D.

Meanwhile, cloud computing-related investment is projected to reach approximately $34 million in FY24.