Sleep easy: ResMed up 33%

SLEEP disorder company ResMed has brushed aside the global financial crisis and a sharp recession the United States, its biggest market, to post a double-digit gain in revenue and a healthy 33 per cent boost in profits for the year.

By InvestSMART · 8 Aug 2009

By InvestSMART ·
8 Aug 2009

ResMed, which sells devices to treat sleep apnoea, said it was well positioned to power ahead following 20 per cent gains in North America during the fourth quarter of 2008-09 and expanding margins.

"The ... the market for sleep disordered breathing therapy [SDB] remains highly underpenetrated and the drive to increase the awareness of SDB and improve patient compliance seems to have shielded us from the economic factors affecting many other companies," ResMed said.

Future growth was promising as it continued to raise awareness about the relationship between sleep-disordered breathing, obstructive sleep apnoea and the associated cardiac disease, diabetes, hypertension and obesity. It was also active in occupational health and safety, with a particular focus on the transport industry.

The company, founded in Australia but now in the US, reported its quarterly and annual results yesterday. Sales and profitability alike set records for the June quarter.

ResMed said revenue for the June quarter was $US252 million ($300 million), up 7 per cent on the same quarter in 2008, while profit was $US45.4 million, an increase of 53 per cent.

The chief executive, Kieran Gallahue, said the company's favourable mix of product sales and market share gains led to strong growth in the Americas during the quarter.

Sales outside the Americas were affected by currency movements, in particular the depreciation of the euro against the US dollar. "Consequently, sales outside the Americas fell by 4 per cent, but were up 10 per cent in constant currency terms."

ResMed shares rose 15c to $5.25.