This morning Nanosonics Ltd (ASX: NAN) reported its half-year results for the period ending December 31 2018. Below is a summary of the results with comparisons to the prior corresponding half year.
- Record sales of $40.7m, up 36% on pcp and up 33% on prior half
- Net profit after tax of $7.1m, compared to $2.2m
- Operating profit before tax of $11m, compared to $3.7m
- Cash balance of $71.3m, up $1.8m
- Latest Trophon 2 device launched in U.S. Europe and Australia over Aug / Sep 2018
- Global installed base up 9% to 19,310 units
- North America installed base up 9% to 17,020 units
- North America made up $37.1m of total revenue of $40.7m
The Nanosonics share price is up 12% to a record high of $4.08 in response to a strong result driven by the release of its latest "Trophon 2" ultrasound probe disinfectant machine.
The company's management had previously flagged to investors that it expected this new core product release to boost its financials over the six months to December 2018 and it has delivered on that promise.
As we can see from the above numbers around 90% of sales still come from its core U.S. healthcare market, but importantly Nanosonics retains a strong outlook based on its growth opportunities in the U.S. and rest of the world.
For example it reckons its total addressable market today is around 120,000 units globally, which is more than 6x its existing installed base.
The business also enjoys the benefits of ever-increasing public and private spending on market-leading healthcare solutions.
As such it's previously been likened to a junior version of Cochlear Ltd (ASX: COH) or ResMed Inc (ASX: RMD). While these suggestions might seem outlandish for now, if the business produces another couple of years of strong growth the stock price and valuation is likely to follow the earnings higher.
