Cochlear has reported a weaker first-half result, with delays in contracting and price negotiations for its new Nexa implant system impacting earnings. As a result, the company has indicated that its full-year profit is likely to be at the lower end of its previously issued guidance. Cochlear is a global medical device company specialising in implantable hearing solutions. They design, manufacture, and supply the Nucleus cochlear implants, Osia bone conduction implants, and Baha bone conduction systems.
Sales revenue saw a modest increase of 1 per cent, reaching $1.18 billion. However, the underlying net profit experienced a decline of 9 per cent, falling to $195 million. The statutory net profit also decreased, dropping by 21 per cent to $162 million. This figure includes $24 million in cloud-related costs and a $9 million write-down on investments. Despite the profit dip, the interim dividend remains steady at $2.15 a share.
Cochlear noted that the rollout of the Nucleus Nexa system faced unexpected delays, as the company pursued price increases and contract renewals. This slower-than-anticipated process hindered revenue momentum during the first half of the year. Looking ahead to FY26, the company anticipates underlying net profit to be at the lower end of its projected range of $435 million to $460 million.
Despite the challenges in the first half, Cochlear expects a stronger performance in the second half of the year. This anticipated improvement is supported by increased availability of the Nexa system, robust growth in services, and positive momentum in acoustics. The company cautioned that currency fluctuations remain a potential risk and that the current levels of the Australian dollar could reduce underlying net profit by approximately $30 million.
