Cochlear Hikes Dividend Almost 30% After Strong Profit Growth
Australian hearing implant manufacturer, Cochlear, has announced a nearly 30% increase in its dividend after reporting a 35% jump in first-half profit thanks to robust sales performance. The company's strong financial results exceeded analysts' expectations.
Cochlear, listed on the Australian Stock Exchange (ASX), has increased its payout for the December half to 2.00 Australian dollars (US$1.31), up from A$1.55 from the previous year. The substantial hike in dividend reflects the company's confidence in its future growth prospects.
The company reported an underlying net profit of A$191.8 million from sales revenue of A$1.11 billion, in line with the unaudited accounts it released on February 8. Revenue also saw an impressive increase of 25% compared to the previous year, driven by a 14% rise in unit sales of its hearing implants.
Analysts had initially predicted an underlying net profit of A$180.4 million from sales of A$1.08 billion before the unaudited accounts were released. Cochlear's better-than-expected financial performance has generated positive sentiment among investors and industry experts alike.
The surge in profit and sales indicates strong demand for Cochlear's hearing implants, showcasing the company's position as a leading provider of innovative hearing solutions. The dividend increase demonstrates Cochlear's commitment to rewarding its shareholders while emphasizing its financial health and stability.
Cochlear's success in the first half of the financial year positions the company for further growth as it continues to exceed market expectations.
Analyst comment
Positive news: Cochlear hiked its dividend and reported a strong profit and sales growth. Market is expected to respond positively with an increase in the company’s stock price.
