Nanosonics Witnessed A 12% Jump On ASX On Releasing 1HFY2019 Financial Results

  • Feb 25, 2019 AEDT
  • Team Kalkine
Nanosonics Witnessed A 12% Jump On ASX On Releasing 1HFY2019 Financial Results

Healthcare company, Nanosonics Limited (ASX: NAN) has published its Half Yearly Report for the half year ending 31 December 2018.

Business Performance

The sales for the period stood at $40,693,000, as compared to the sales of $30,009,000 were noted in the prior corresponding period. The Gross profit has been noted at $30,582,000, as compared to $22,334,000 in the prior corresponding period.

The Global installed base grew 9% in the last 6 months and 20% over the previous 12 months to 19, 310 units Trophon2 successfully launched in North America, Europe and Australia during August end and September.

Nanosonics is expanding its footprint geographically both direct and through distribution. Its operations were established in the UK, Germany and France and had been expanding through distribution in Scandinavia and the Middle East. Trophon is already a standard of care in Australia with approximately 70% market penetration. The company is also exploring opportunities in the broader Asia Pacific market including China.

The New agreements in Europe as fundamentals for adoption are continuing to improve.  The New deal has been established with GE Healthcare for distribution in Denmark, Finland, Spain and Portugal, effective February 2019. This new agreement is in addition to existing agreements with GE Healthcare in Sweden and Norway. A new distributor was also appointed for Switzerland.

On 11 January 2019, Nanosonics Japan KK was established, (a wholly owned subsidiary of Nanosonics Limited), that is based in Japan.

Financial Performance

Sales for the half-year were $40.7 million ($38.4 million in constant currency), up 36% on prior corresponding period and 33% on prior half. Capital revenue of $16.4 million was up 11% on the prior corresponding period and 52% on the previous half.

Revenue associated with consumables and service of $24.3 million was up 59% on prior corresponding period and 22% on the prior half. Operating profit before tax was $11.0 million compared with $3.7 million in the prior corresponding period and $1.9 million for the previous half.

Cash balance was noted at $71.3 million as at 31 December 2018, up $1.8 million compared with 30 June 2018. Free cash flow for the half was $1.6 million compared with $3.9 million in the prior corresponding period and $3.9 million in the previous half.

Outlook

Nanosonics anticipates to consistently grow in installed base in North America with FY19 adoption like last year. The Upgrades/replacements of trophon EPR units beyond 5 years old would begin in FY19.

The adoption in Europe would grow with the ongoing strong adoption in the UK, where new unit growth is targeted to be in the vicinity of 50% over FY18, of which the majority will be under Managed Equipment Service, also with  the new guidelines in Germany as well as launch of trophon2 would trigger broader adoption and  further new guidelines are to be released in France by the Ministry of Health.

Active investment in growth with total FY19 operating expenses are expected to be approximately $50 million including about $12 million in R&D, with most of that R&D expense directed towards new product development.

At the closure of the trading session, the stock price of the company stood at A$4.080 (as at 25 February 2019), up by 12.397% from its previous close.


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