Resmed (RMD) is a leading developer, manufacturer and distributor of medical equipment for treating, diagnosing, and managing sleep-disordered breathing and other respiratory disorders such as sleep apnoea.
The company has developed number of products for the treatment of sleep-disordered breathing and sleep apnoea, including airflow generators, mask systems, diagnostic products and other accessories.
Its major market is the US, which accounts for around 47% of overall revenue.
FY13 revenue soared 11% to US$414.6 million, driving a 21% surge in net profit to US$307.1 million. A quarterly dividend of US$0.25 per a share was declared, up 47%. The group is experiencing growth in its core US market. Although sleep mask sales were up a modest 7% due to competitive pressures, device sales enjoyed a solid 16% increase. RMD implemented cost cuts to mitigate a 4% – 6% reduction in the price of its sleep devices.
The significant depreciation in the Aussie dollar is expected to act as a tailwind over the coming year, helping to boost FY14 gross profit margin to 61% – 63%.
Margins are expected to be further supported by manufacturing gains and an improved product mix. RMD’s Asian expansion is also likely to gather pace, with products being launched in India and China expected to translate into stronger top line growth.