Cochlear Ltd. reported a 22% drop in full-year profit on Thursday, citing weaker demand and ongoing supply chain challenges despite exceeding market forecasts.
The Sydney-based hearing-implant manufacturer posted net profit of A$238.5 million ($156.8 million) for the 12 months ended June 30, down from A$305.1 million in the prior year. Revenue fell 10% to A$1.56 billion, reflecting softer sales in key markets including the United States and Europe.
Analysts, on average, had expected a net profit of A$210 million and revenue of A$1.52 billion, according to Refinitiv data. Cochlear said the decline in earnings was primarily driven by reduced procedure volumes and higher operational costs, partly offset by cost-control measures.
The company maintained its full-year dividend at A$1.60 per share, unchanged from last year. Cochlear also reaffirmed its guidance for fiscal 2025, expecting revenue growth in the low- to mid-single digits and net profit to recover gradually as supply constraints ease.
Shares were little changed in early trading, with Cochlear’s stock down 0.3% at A$219.50 in Sydney.
Cochlear’s hearing solutions remain a key player in the global cochlear implant market, which is valued at approximately $2.5 billion annually.
