ResMed (ASX:RMD) shares fall after reporting flat sales in Q3 FY21


  • Digital health behemoth ResMed has released its quarterly results for the March 2021 quarter reporting flat sales.
  • The Company witnessed lower device sales and decreased demand for its ventilators due to COVID-19.
  • However, strong sales in ResMed’s mask product portfolio helped generate 2% revenue growth in Canada, Latin America, and the US.

Dual-listed world-leading digital health player ResMed Inc (ASX:RMD, NYSE:RMD) today announced results for its quarter ended 31 March 2021. ASX 200-listed ResMed witnessed lower device sales and decreased demand for its ventilators due to COVID-19. This has impacted the revenue growth of the Company.

Source: Copyright © 2021 Kalkine Media Pty Ltd.

Some of the other ASX companies reporting their quarterly results today include Pharmaxis Limited (ASX:PXS), Artemis Resources Limited (ASX:ARV), Vection Technologies Ltd (ASX:VR1) and Botanix Pharmaceuticals Limited (ASX:BOT) and Petratherm Limited (ASX:PTR).

ALSO READ: ASX 200: Everything you need to know before going into trade today 

Let us look at the quarterly results in detail:

Revenue highlights

During the quarter, the Company derived no incremental revenue from COVID-19-related demand. For comparison, RMD had posted US$35 million worth of incremental revenue in the same quarter last year.

Without considering the impact of the incremental COVID-19-related revenue from the prior-year quarter, revenue increased by 1% on a constant currency basis.

  • Revenue in the US, Latin America, and Canada, except from Software as a Service, grew by 2%. The growth was driven by robust sales across the mask product portfolio, partially offset by lower device sales, including reduced demand for ventilators.
  • Revenue in Europe, Asia, and other markets dropped by 13% on a constant currency basis due to lower device sales, including decreased demand for the ventilators because of the pandemic and flat sales in the mask product portfolio.
  • Software as a Service revenue was up 5% because of continued growth in resupply service offerings and stabilising patient flow in out-of-hospital care settings.

ALSO READ: ASX healthcare shares OVN and ECS trading in red despite positive March quarter

Other key highlights-

  • The Company stated that income from operations increased by 3%, and non-GAAP income from operations increased by 2%.
  • Net loss for the quarter was US$78.5 million, mainly due to the additional income tax reserve of US$254.8 million.
  • Non-GAAP net income increased by 1% to US$190.4 million.

During the quarter, the Company declared a quarterly cash dividend of US$0.39 per share and paid US$56.8 million in dividends. The dividend will be payable on 17 June 2021.

Mick Farrell, CEO of ResMed, commented:

Mr Farrell also added that in the near future, the Company foresees increased awareness of respiratory health importance, rising adoption of digital health, as well as an increased focus on the importance of delivering healthcare services at home.

Furthermore, ResMed is confident in accelerated growth in patient flow and ongoing progress for the Company’s goal of advancing 250 million lives in out-of-hospital healthcare in 2025.

On 30 April 2021, RMD shares were trading at AU$26.015, down 4.777% at AEST 12:16 PM.

ALSO READ: How did ASX-listed stocks CM8, GPT, ZNO fare in March 2021 quarter?

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.



Top Penny Picks under 20 Cents to Fit Your Pocket! Get Exclusive Report on Penny Stocks For FREE Now.



Rated 4.3/5 based on 904 Reviews at Google My Business
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK