The Nanosonics Ltd (ASX: NAN) share price is having a very strong start to the week.
In morning trade, the infection control specialist's shares were up as much as 10% to $3.47.
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Why is the Nanosonics share price surging 10%?
Investors have been fighting to get hold of the company's shares on Monday after it released a trading update.
According to the release, Nanosonics delivered strong growth in both capital and consumables/service revenue in the second half compared to the first.
This was particularly the case in the key North America market, which is getting investors excited today.
Management notes that this was driven by additional customer offerings to bridge budget constraints, a number of organisational changes in particular sales territory realignments, and a growing pipeline, together with improvements in sales conversion timelines.
Show me the money
Nanosonics revealed that it expects to report total revenue of approximately $170 million in FY 2024, which is an increase of 2.4% year on year.
This comprises first half revenue of $79.6 million and second half revenue of approximately $90.4 million. The latter represents a half on half increase of 14%.
Nanosonics' second half revenue growth was driven by a 20% half on half increase in capital revenue to $26.4 million and an 11% increase in consumables/service revenue to approximately $64 million.
The company also provided an update on its trophon footprint. It advised that a total of 3,850 trophon units were placed during the year, comprising 2,340 new installed base and 1,510 upgrade units.
For the second half, total units placed were 2,130, up 24% when compared with first half. Whereas new installed base units in the second half were 1,240, which is up 13% half on half. Upgrade unit sales were of 890 for the second half, up 44% on the first half.
The majority of this growth came from North America during the half, with total units placed up 28% to 1,850 and new installed base units up 6% to 1,030.
Nanosonics' CEO and President, Michael Kavanagh, was pleased with the performance. Especially given the challenging trading conditions. He said:
Despite a challenging market environment, the growth opportunity for trophon remains significant. With a growing pipeline for both new installed base and upgrades, it was pleasing to see the sales conversion timelines improve in the second half, which resulted in significant growth in H2 over H1 for capital unit sales.
The Nanosonics share price remains down by almost 30% since this time last year.
