Half Year 2024 Nanosonics Ltd Earnings Call Transcript
Key Points
- Nanosonics Ltd (ASX:NAN) reported a global revenue of $79.6 million for the half-year, indicating a strong financial performance despite market challenges.
- The company saw a 4% increase in consumables and service revenue, highlighting the resilience of its recurring revenue streams.
- The global installed base grew by 1,100 units to 33,550 units, demonstrating continued market penetration and adoption.
- Nanosonics Ltd (ASX:NAN) has a strong balance sheet with $118.3 million in cash and no debt, providing financial stability and flexibility.
- The company is making significant progress with its new CORIS technology, which is expected to set new standards in infection prevention for flexible endoscopes.
- Nanosonics Ltd (ASX:NAN) experienced a 2% decline in global revenue compared to the prior corresponding period, primarily due to lower-than-expected capital sales.
- The company faced significant challenges with hospital capital budget constraints, particularly in North America, impacting sales and revenue.
- Upgrade volumes were down 23% on the prior corresponding period, with only 620 units sold in the first half.
- Operating expenses increased by 12% compared to the prior corresponding period, putting pressure on profitability.
- The gross profit margin is expected to decrease in the second half due to a higher proportion of capital sales and potential short-term impacts from new customer offerings.
Thank you for standing by, and welcome to the Nanosonics Limited 2024 Half Year Results Call. (Operator Instructions)
I would now like to hand the conference over to Mr. Michael Kavanagh, Managing Director and CEO. Please go ahead.
Thank you very much, and a very good morning, everybody, and thank you all for joining the call this morning. I am joined here today with Jason Burriss, our CFO, who, as you know, joined the organization a number of months ago in October. And you'll hear from Jason shortly as we go through the financial outcomes for the half year.
As you will have seen, the results released this morning confirm the numbers in the trading update we provided on the 23rd of January. And it's clear from the results that the market challenges that we faced in the first half resulted in lower-than-expected capital sales, in particular, upgrades, which consequently impacted our revenue. And these challenges, as explained before,
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