Date : 19/02/2021

Learn why Cochlear’s (ASX:COH) statutory profit surged 50% in first half

Cochlear is a medical device company that designs, manufactures and supplies the Nucleus cochlear implant, the Hybrid electro-acoustic implant and the Baha bone conduction implant. The Chiclear share price has been very volatile throughout the pandemic. We have witnessed the share price go as high as $238 and as low as $154 during the past 1 year.

This morning, Cochlear shares have been upbeat surging over 8% on the back of their financial result for the first half of FY2021. Following the shutdowns due to Covid19, Cochlear has experienced improving momentum across the half year as surgeries have recovered. The USA, Japan, Kora, and China have been the regions with strong growth. The statutory net profit increased 50% to $236.2 million for the half ended December 2020. This is compared to the $157.7 million the previous corresponding period. The increase is largely due to one off gains such as – $59 million in patent litigation related tax, $34.7 million in innovation fund gains, $17.2 million in Covid19 government assistance, etc.

Following the growth in net profits, Cochlear has re-introduced dividend and is paying out 60% of its net profits as an interim dividend of $1.15 a share. Cochlear shares closed today at $221.68 a share. The firm expects continued recovery in surgery rates, but there are challenges as the reemergence of the virus is forcing lockdowns in other parts of the world. Australia’s economy in 2021 is looking bright and so will most developed economies as we emerge from the crisis. Cochlear is expected to deliver underlying net profit after tax of $225 million – $245 million for FY2021 full year – representing about 46% – 59% increase over FY2020.

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