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Highlights:
- Share price Nanosonics dropped by over 9% on Monday morning, despite sharing the positive business update.
- Nanosonics has successfully implemented the direct sales model in North America, and post-transition, the shipping volumes have increased by more than 100%.
- The FY22 revenue update is expected to be released on 23 August 2022.
Infection prevention company, Nanosonics Limited (ASX:NAN), on Monday (25 July 2022), shared its business update as per which the transition to a direct sales model in North America is completed. After the change, the shipping volume via the Nanosonics facility in Indianapolis, has surged by more than 100%, said Nanosonics in a statement.
The company has also shared a updates regarding trading for the fourth quarter of the financial year 2022 (4QFY22).
The share price of Nanosonics dropped by 9.09% to AU$4.20 apiece at 10:54 AM AEST. The benchmark index, ASX 200 Health Care (INDEXASX:XHJ) was down 0.51% to 42,773.50 around the same time.
Update on direct sales model in North America
Image source: © Rfischia | Megapixl.com
As per today’s release, Nanosonics successfully completed the transition of the GE Trophon customers in partnership with GE. A considerable proportion of the consumables sales is conducted via direct channels.
The increase in the shipping volume in Indianapolis by 100% has not disrupted the supply to customers. Also, the company boasts of having the required capacity to manage the anticipated growth in future, said Nanosonics.
The healthcare company has expanded its North America team, associated with the direct operations expansions. Reportedly, the expanded team has sold 91% of the newly installed base units in the fourth quarter.
According to the ASX announcement, in the second half of 2022, the number of upgraded units sold increased by 32% over the first half. Nanosonics brought in 86% of the sales.
In FY22, the global installed base stretched by 12% to 29,850.
The company expects that Nanosonics will continue to bring the majority of the future capital sales.
What to expect from Nanosonics in FY22?
The infection control technologies developer expects a 17% increase (as compared to FY21) in the revenue to AU$120.3 million in FY22.
The investors can expect to see the FY22 revenue details and R&D update by 23 August 2022, informed Nanosonics.
Share performance of Nanosonics
Nanosonics shares, in last one year, have seen a downfall of more than 21%. The share price has lost more than 34% on year-to-date basis and in last one month, the share price has gained over 21%.
About Nanosonics
Nanosonics has developed and commercialised an automated disinfection technology – the Trophon device. The vision of the company is to offer fail-safe infection prevention solutions. The company’s headquarter is located in New South Wales, Australia.
