Cochlear, Australia’s bionic ear company, posted a 1% fall to $110.8 million in first half profit, partly due to US President Donald Trump’s company tax cuts.
Net profit for the six months to December includes a $5.5 million one-off non-cash impact from the revaluation of deferred tax assets following the reduction in US corporate tax rates to 21% from 35%. This reduced Cochlear’s reported net profit growth by 5%.
Overall sales revenue was up 6% to $639.6 million. Dividends rose 8% to $1.40.
“The business generated solid cash flows and this has funded an 8% increase in the interim dividend,” says Cochlear’s CEO and president, Dig Howitt.
“Cochlear’s priorities are focused on the customer with activities aimed at building consumer awareness of cochlear implants and the importance of hearing to healthy ageing.
“We will continue to invest around 12% of sales in research and development (R&D) to strengthen our technology leadership position while expanding our investment in research and trials to build the clinical evidence that further demonstrates the effectiveness of our products.”
Sales of cochlear implants were down 2% to 15,972, mainly due to timing of delivery to China. However, implant sales revenue still grew 6% to $639.6 million.
The company expects net profit of $240 million to $250 million for the full year.
Cochlear shares last traded at $171.79.
The half year results at a glance: