The share price of ASX 200 healthcare stock Nanosonics Ltd (ASX: NAN) is 11.85% higher at $3.02 following the company's release of its full-year FY24 results.
The Nanosonics share price opened at $2.86 and quickly ascended to an intraday high of $3.08 as investors digested news of a "significant turnaround" in the second half, with revenue rising 14%.
Let's take a closer look at the numbers.
Nanosonics share price among the fastest risers today
At the time of writing, the Nanosonics share price is the second-highest riser of the day within the S&P/ASX 200 Index (ASX: XJO).
Here are the highlights of the report:
- Total installed base growth of 7% (2,340 units) to 34,790 units globally in FY24
- Sales revenue increased 2% to $170 million in FY24
- Recurring revenue up 9% to $121.8 million in FY24
- Gross profit $132.4 million, up 1% on FY23
- Gross profit margin of 77.9% in FY24 compared to 78.7% in FY23
- Net profit after tax (NPAT) of $13 million, down 35% on FY23
- Free cash flow of $20.4 million
- Cash and cash equivalents of $129.6 million as of 30 June with no debt
What else happened in FY24?
Nanosonics said there was a significant turnaround in 2H FY24, which reversed the negative revenue growth in the first half. Revenue in the second half was 14% higher than the first half.
This resulted in an increase in overall total revenue for the year by 2% to $170 million.
The company said its NPAT was lower in FY24 due to investments in its long-term growth strategy.
What did Nanosonics management say?
Nanosonics CEO and President Michael Kavanagh said:
The effects of inflation on hospital capital budget availability were felt during the year. Despite a growing pipeline for trophon units, an increase in the timeframes to conclude sales was experienced.
This was particularly marked in upgrade unit sales in the first half, as customers extended the use of their existing trophon EPR model resulting in lower than anticipated total capital unit sales for the year.
What's next for Nanosonics?
Nanosonics said research and development continued to be a cornerstone of future growth.
The company invested $32.8 million in FY24, up 11% on FY23.
The company said it progressed its Endoscope Reprocessing program with CORIS and new projects in its ultrasound reprocessing and connectivity product categories to advance its future product line.
Nanosonics says Coris is its next transformational product.
Its development reached a critical milestone in April when the company filed its de novo regulatory submission with the United States Food and Drug Administration (FDA).
The price of the ASX 200 healthcare stock fell by 3.08% on the day the filing was announced.
The company said:
Endoscope cleaning represents a significant opportunity. There are over 60 million flexible
endoscope procedures conducted per annum across major Western markets including the United
States, Canada, Australia and key European markets which form the opportunity for CORIS.
Nanosonics share price snapshot
The Nanosonics share price has fallen 26.3% over the past 12 months.
By comparison, the S&P/ASX 200 Health Care Index (ASX: XHJ) has risen 16.1% and the ASX 200 has lifted 12.9% over the same period.
