COCHLEAR LIMITED HALF YEAR REPORT 2016
Hearing Performance
Dear Shareholder
I am pleased to provide you with extracts from our half year report lodged with the Australian Securities Exchange on 11 February 2016.
Overview
The positive momentum we saw in FY15 has continued into HY16 with both our Implant business and Services business delivering
strong growth.
We are particularly pleased with the Implant business, which delivered sales growth across both developed and emerging markets, with some countries like the United States (US) experiencing accelerated market growth.
The business is benefitting from the rollout of new products launched in FY15 and the continued investment in strategic growth initiatives that commenced two years ago.
The Services business continues to grow strongly and now represents around 25% of sales revenue. We are building a lifetime relationship with our recipients to provide products, programmes and services, and expect its contribution to continue to trend upward over time as the recipient base grows.
Highlights
Sales revenue of $581.7 million, up 32% (up 16% in constant currency) delivered across developed and emerging markets
Total revenue of $558.1 million, up 27%
Recent product releases and continued investments in strategic growth initiatives driving market growth
Net profit of $94.0 million, up 32%
Sales revenue and earnings benefit from the depreciation of the Australian dollar
Basic earnings per share of 164.7 cents per share, up 31%
Interim dividend of 110.0 cents per share, up 22%, franked at 100%, representing a payout of 67% of first half net profit.
A detailed discussion of the results for the half can be found at our website: www.cochlear.com.
Chris Smith
Chief Executive Officer & President 11th February 2016
Cochlear Limited and its controlled entities Interim Statement of Comprehensive Income For the half year ended 31 December 2015
31 Dec 2015 $000 | 31 Dec 2014 $000 | |
Revenue | 558,088 | 438,346 |
Cost of sales | (171,278) | (127,369) |
Gross profit | 386,810 | 310,977 |
Selling and general expenses | (158,870) | (122,686) |
Administration expenses | (34,717) | (28,559) |
Research and development expenses | (70,193) | (61,360) |
Other income | 7,937 | 2,086 |
Results from operating activities | 130,967 | 100,458 |
Finance income - interest | 130 | 90 |
Finance expense - interest | (4,814) | (5,542) |
Net finance expense | (4,684) | (5,452) |
Profit before income tax | 126,283 | 95,006 |
Income tax expense | (32,250) | (23,631) |
Net profit | 94,033 | 71,375 |
Basic earnings per share (cents) | 164.7 | 125.3 |
Diluted earnings per share (cents) | 164.4 | 124.9 |
Cochlear Limited and its controlled entities Interim Balance Sheet
As at 31 December 2015
31 Dec 2015 $000 | 30 Jun 2015 $000 | |
Assets | 80,251 | 72,208 |
Cash and cash equivalents | ||
Trade and other receivables | 271,733 | 249,744 |
Forward exchange contracts | 2,276 | 3,853 |
Inventories | 150,784 | 145,861 |
Current tax assets | 5,182 | 3,606 |
Prepayments | 15,758 | 13,754 |
Total current assets | 525,984 | 489,026 |
Other receivables | 2,728 | 63 |
Forward exchange contracts | 1,610 | 1,910 |
Property, plant and equipment | 80,533 | 80,809 |
Intangible assets | 234,725 | 228,531 |
Deferred tax assets | 78,557 | 68,717 |
Total non-current assets | 398,153 | 380,030 |
Total assets | 924,137 | 869,056 |
Liabilities | 107,295 | 99,858 |
Trade and other payables | ||
Foreign exchange contracts | 18,851 | 24,162 |
Loans and borrowings | 168,426 | 168,159 |
Current tax liabilities | 14,459 | 20,645 |
Employee benefit liabilities | 37,177 | 43,223 |
Provisions | 30,649 | 26,652 |
Deferred revenue | 23,102 | 20,585 |
Total current liabilities | 399,959 | 403,284 |
Foreign exchange contracts | 8,848 | 10,961 |
Loans and borrowings | 44,687 | 44,552 |
Employee benefit liabilities | 11,949 | 11,479 |
Provisions | 43,349 | 43,394 |
Total non-current liabilities | 108,833 | 110,386 |
Total liabilities | 508,792 | 513,670 |
Net assets | 415,345 | 355,386 |
Equity | 157,180 | 144,136 |
Share capital | ||
Reserves | (16,151) | (26,201) |
Retained earnings | 274,316 | 237,451 |
Total equity | 415,345 | 355,386 |
Cochlear Ltd. issued this content on 31 March 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 30 March 2016 23:16:31 UTC
Original Document: http://coh.live.irmau.com/IRM/PDF/1362/HalfYearReport2016
