Medical equipment company ResMed (ASX:RMD) has recorded an increase in revenue and profit for the September quarter, while a softer gross margin was also noted.
The California-based company recorded revenue of US$904 million, up 20 per cent year-on-year, driven by increased demand for its sleep and respiratory care devices and a recent product recall by one of its competitors. This was partially offset by decreased Covid-19 related demand for ventilators.
ResMed’s operating profit grew 21 year-on-year and non-GAAP operating profit grew 18 per cent. One slight disappointment was its softening gross margin, which decreased by 230 basis points, mainly due to higher manufacturing costs, incremental freight costs, and lower average selling prices.
“It is through the extraordinary efforts of our global ResMed team that we were able to deliver products and solutions to our customers amid unprecedented supply chain challenges that continue to restrict access to critical electronic components,” said CEO Mick Farrell.
Diluted earnings per share increased 14 per cent in the September quarter to US$1.39. This was 15 cents per share ahead of the market consensus estimate. The ResMed board of directors today declared a quarterly cash dividend of $0.42 per share, to be paid in December.
“As we navigate supply limitations and are forced to allocate products, we continue to ensure priority for highest-acuity and highest-need patients first, as well as working with physicians, providers, and community systems to maintain a sustainable flow of medical devices and digital health solutions to patients who need care.”
Shares in ResMed (ASX:RMD) are trading 4.5 per cent higher at $37.27.