Hearing implant group Cochlear (ASX:COH) will reward shareholders with a sharp rise in dividend and a buyback after reporting a record result for the year to June, with total revenue exceeding $2 billion for the first time.
The company informed the ASX on Thursday that revenue surged 15% to $2.24 billion for 2023-24, up from the previous year’s $1.94 billion. This drove a corresponding 18% increase in statutory net profit to a record $356.8 million, from $300.6 million a year ago.
Given its strong profit growth, Cochlear announced a 20% increase in the final dividend to $2.10 per share. This brings the total dividends for the year to June to $4.10 per share, a 24% year-on-year increase. Additionally, the board has approved a $75 million share buyback.
Directors stated in Thursday’s ASX release that the robust growth was driven by performance across all business units. However, the Cochlear implant business was the standout performer, with revenue increasing 18% to $1,329.6 million. This was fueled by a 9% increase in Cochlear implant units to 48,040, primarily driven by strong growth in the adults and seniors segment across developed markets.
Cochlear’s Services revenue climbed 15% in FY 2025 to $672.3 million, underpinned by strong upgrade demand for the Cochlear Nucleus 8 Sound Processor. The company noted that emerging market sound processor upgrade penetration is steadily improving in several markets as funding increases.
The company’s acoustics business reported a 7% increase in revenue to $256.3 million, with growth concentrated in the second half, up 15% in constant currency. This was boosted by strong demand for the new 3 Tesla MRI compatible Cochlear Osia Implant, launched in the US in December.
Cochlear highlighted that costs grew at a slower pace than revenue, increasing by 13% over the year to June. Consequently, the company’s underlying net profit margin improved to 18% (from 17%), excluding cloud computing-related expenses, aligning with its long-term target. This resulted in a 27% year-on-year increase in underlying net profit to $386.6 million.