Implantable Hearing solutions provider, Cochlear Limited (ASX: COH) registered 9% rise in revenue after the launch of world’s first Made for iPhone cochlear implant sound processor, Nucleus 7. On Tuesday, 14 August 2018, the company released its results for financial year ending 30 June 2018.
Adjusted net profit of the company increased to $245.8 million, an increase of 10% on FY17, which was within the guidance range of $240-250 million. In FY18, sales revenue of the company grew 9% on the back of unit growth of 8% to 35,260 units with solid Cochlear implants unit’s growth in US and UK. The total sales revenue of $1.4 billion represents 48% of revenue from America region, 35% from Europe, Middle East and Africa region, and remaining 17% from Asia pacific. Company reported earnings per share of $4.27, up by 10%, as Earnings before interest and tax increased by $32.8 million to $348.4 million.
The business generated $258.1 million in operating cash flow, with free cash flow increasing to $202.7 million as compared to previous year. This gap of $55.3 million between operating cash flow and free cash flow is mainly attributable to capital expenditure of $42.0 million, driven by additional investment in plant and equipment and IT systems. Solid cash flow generation supported the 14% increase in the fully franked final dividend of $1.60 per security making a full year dividend of $3.00 per security, up 11%.
Chief executive Dig Howitt said the company expects an 8-12% increase to $265 million to $275 million in FY19, falling short of market expectation.
The company also announced that non-executive director Professor Edward Byrne has advised his intention to retire from Cochlear Limited Board at the end of next Annual General Meeting after serving for 16 years to the board.
Following to FY18 results announcement, COH shares dropped by $6.030 or 3% to $192.750 as investors found the result to be falling short of expectations.
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