Australian hearing implant company Cochlear has posted annual revenues of over $1 billion, up 23 per cent on the year before, and a 30 per cent rise in net profit to $189 million.
According to CEO and President, Chris Smith, “The positive momentum we saw in FY15 has continued throughout FY16 with strong growth delivered across all product categories and regions. The business achieved a major milestone with sales revenue increasing by 23% (12% in constant currency) to $1.158 billion, exceeding $1 billion for the first time.
“The cochlear implant business delivered revenue growth of 21% (10% in constant currency) and unit growth of 12%. Our leading developed markets, including the United States (US), the United Kingdom (UK), Germany and Australia, each grew implant units by around 10%. Emerging markets performed well with highlights including China, both in the private pay and tender market, India and the Middle East."
The company increased its R&D spend by 12 per cent to $143 million.
"As we move forward, we are injecting greater discipline into our R&D processes to ensure our investments are customer-driven and returns focused. We expect to deliver new products across all categories over the next 18 months as well as advance our long-term technology development pipeline," said Mr Smith.
He continued, “Cochlear’s priorities are focused on the customer with initiatives aimed at accelerating market growth through global expansion of awareness and increased market access initiatives. With a growing recipient base, now numbering over 450,000, we are actively strengthening our servicing capability to provide products, programs and digital services to support the lifetime relationship with our recipients.
“In order to deliver on these priorities, we have strengthened our organisational capability, appointing a number of key leaders into the organisation. These include President, Services, Stuart Sayers; Chief Medical Officer, Dr Richard Toselli; Chief Operating Officer, Dig Howitt; President, Asia Pacific, Anthony Bishop and Senior Vice President, Global Marketing, Dean Phizacklea.
“We have made solid progress against our business priorities in FY16. These priorities are grow the core; build a service business; shape the organisation and value creation,” he added.
The company said it expects profit growth to slow with a stronger Australian dollar and stable growth in purchases from the Chinese central government.