Cochlear has been allowing the hearing impaired to hear for more than 30 years, and is a long-time market darling. That sentiment remains firmly in place today.
The company's recent annual results showed that Cochlear implant sales rose 8 per cent in the year to 30 June 2017 to 32.6 million.
Profits rose 18 per cent to $223.6 million, mainly due to the launch of new products.
Cochlear declared a final dividend of $1.40 per share, making the dividend for the year $2.70, a 17 per cent increase on the previous year.
Cochlear expects profits to increase 12 per cent in the 2018 financial year.
Strong expected profit growth and the recent increase in the dividend are the main factors that have driven Cochlear shares to record highs.
Despite the rise of competitors in the industry, such as Advanced Bioinics, which has the thinnest implants, Cochlear has demonstrated that it can continue to grow sales, deliver strong profit growth, and increase dividends.
The company is constantly developing its own new products. The Nucleus 7 Sound Processor allows users to stream sound from an iPhone or iPad.
Cochlear has also launched the world's thinnest electrode for cochlear implants, the Nucleus Profile Slim Modular.
Cochlear is also achieving growth through acquisitions. The company recently acquired Sycle, a business that analyses the audiograms that determine whether or not patients are suitable for implants. Research by Morgan Stanley says 500,000 potential candidates for Cochlear implants live near hearing clinics that use Sycle products. This may well be a source of future growth for Cochlear.
It's no wonder the company remains so popular.
