Jump in profits for Australia’s Cochlear Ltd.

One of the reasons behind the good results, reported by MW Market Watch, was the company’s product upgrades which included accessories to connect wirelessly to smart phones or home entertainment systems. High demand was recorded for Cochlear’s latest innovative sound processor known as Nucleus 6.

Net profit in the 6 months through December 2015 was up AUD 94 million (USD 67 million) from AUD 71 million (USD 50 million) a year earlier. Some of this performance was attributed to the weaker Australian dollar, which bolstered results in local currency.

The company’s good results were also partly due to high profits related to increased market penetration in China. According to China Business News, “the company has seen a positive increase in the number of non-government customers in the world’s most populous country. The rising demand from Chinese patients could act as a primary driver for the company after its current contract with the Chinese government expires.”

The outlook for Cochlear, Ltd. is very positive with guidance for the current financial year through June indicating that expected net profit is to rise between 23% and 30%, over the previous year. “With global market penetration for implantable hearing solutions less than 5%, there remains a significant, unmet, and addressable clinical need that will continue to underpin the long-term sustainable growth of our business,” said Cochlear Chief Executive, Chris Smith.

Source: MW Market Watch; China Business News