ResMed Inc.
(ASX: RMD) shares have opened down 1.56% after the sleep apnea business reported its fourth quarter and FY18 result.
ResMed sells health equipment related to the treatment of sleep-related breathing disorders, including sleep apnea.
Here are some of the highlights from RedMed’s report, all amounts are in US dollars unless stated:
- Revenue increased by 13% to $2.3 billion, or a 10% increase in constant currency terms
- Net profit decreased by 8% to $315.6 million, however underlying profit increased by 27% to $507.8 million
- Profit per share decreased by 9% to $2.19, but underlying profit per share increased by 25%
One of the main differences with the underlying figures is that President Trump’s tax cuts added an extra $5.8 million of tax after it imposed a one-time transition tax on unremitted foreign earnings, however for future earnings the tax rate has been cut from 35% to 21%.
The company is trying to reward shareholders and increased the quarterly dividend by 6% to $0.37 per share, with the first dividend payable in September. ResMed also re-purchased 250,000 shares at a cost of $25.9 million as part of its ongoing buyback.
As part of its fourth quarter results ResMed said that its gross profit margin had decreased slightly by 0.1% due to a reduction in selling prices, but manufacturing and procurement efficiencies partially offset this.
During the year ResMed achieved cashflow from operations of $505 million. It paid $199.5 million in dividends and also repaid a net amount of $796.2 million of outstanding debt.
ResMed’s CEO Mick Farrell, said, “We closed out the year with strong performance across all aspects of our business, from solid top-line revenue growth – driven by geographically balanced results across our entire portfolio of offerings – to continued improvements in operating leverage, which has resulted in double-digit bottom-line growth.”
ResMed’s devices are becoming increasingly technological. A few years ago it was announced that it would become part of the Apple Healthkit. The idea was that more monitoring would make more people aware that they had sleep apnea.
