Cochlear's FY profit surges

Hearing implant maker unveils FY profit in line with reduced expectations, revenue dips slightly, confident in product pipeline.

Hearing implant maker Cochlear Ltd is confident its product pipeline will continue to drive growth in the coming year after posting a significant lift in full-year profit.

In the full year to June 30, Cochlear posted a net profit attributable to members of $132.563 million, a 133% increase on the $56.803 million recorded in the previous year.

In June, Cochlear flagged full-year profit guidance of between $130 million and $135 million, well below market expectations at the time of around $155 million, on the back of a weaker performance in its key United States market.

In fiscal 2013, revenue was $752.721 million, a 3% decline on the previous year's $778.996 million.

The group announced a final dividend of $1.27, of which 38.1 cents is franked, payable on September 19.

When combined with the group's interim dividend of $1.25, Cochlear's total dividend will be $2.52, of which 88.1 cents will be franked. In fiscal 2012 the group's total dividend was $2.45.

Investors seemed little fussed by the result. At 1045 AEST, Cochlear shares were 0.27% higher at $59.31, against a benchmark index fall of 0.07%.

Nucleus 6 to be key to FY14

Cochlear said it was confident it had a strong product pipeline that would drive further growth in the year ahead, however, it warned the roll out of its Nucleus 6 project would be crucial to its performance.

"Nucleus 6 is currently being rolled out in Europe and regulatory approvals in other jurisdictions are anticipated during the year," the group said.

"Timing of regulatory approvals and effectiveness of the Nucleus 6 launch execution will be important for the 2014 result."

The group noted the "building blocks" that underpin its long-term growth are firmly in place.

Regional performance mixed

Cochlear's sales performance in both the Americas and Europe, Middle East and Africa (EMEA) weighed on the group, respectively declining four and one%.

However this was offset by a 20% lift in Asia Pacific sales which totalled $147.6 million.

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