ResMed (ASX: RMD) posted a solid December quarter, with most figures slightly exceeding market expectations, driven by strong device growth.
Revenue up 10.3% to US$1.28bn (0.9% ahead of consensus)
Income from operations up 19.3% to US$436m (1.9% beat)
Net income up 29.2% to US$358m (4.4% beat)
Underlying EPS of US$2.34 (3.4% beat)
Interim dividend of 53 US cents per share (2.6% miss)
The below topics have been answered by CEO Mick Farrell and CFO Brett Sandercock.
US device growth: “Global device sales were driven by strong market performance across our US as well as Europe, Asia, and rest of world markets, reflecting the continuing demand for our AirSense 10 and AirSense 11 platforms. Device sales remain strong, growing double digits year over year.”
FX impact: “Year-over-year movements in foreign currencies negatively impacted revenue by approximately $2 million during the December quarter. Additionally, we expect that year-over-year movements in foreign currencies will also negatively impact our Q3 revenue somewhere in the range of $15 million to $20 million.”
GLP-1 awareness and impact: “We are now tracking 1.2 million patients who have had a prescription for the latest generation GLP-1 medicines and who also have a prescription for positive airway pressure therapy. The data are clear in this real-world analysis: these people are more than 10% more likely to start PAP therapy and over the long term, they adhere more.”
Device market growth outlook: “We make the market-leading sleep health platform with the AirSense 11. I want to make it clear that there is still strong global demand for the second-best device platform in the market, and that is the AirSense 10 range.”
New product launches and expectations: “During the quarter, we launched the AirTouch N30i to select markets. The AirTouch N30i is a world first from ResMed with its unique fabric-based patient interface.”
Consumer wearables and medtech convergence: “The Samsung Galaxy Watch was the first to get de novo FDA clearance for detecting OSA early in 2024, and Apple announced sleep apnea detection from the main stage as they launched the latest generation Apple Watch in September 2024.”
Dividends and buybacks: “Today, our board of directors declared a quarterly dividend of $0.53 per share. During the quarter, we purchased approximately 307,000 shares under our previously authorized share buyback program for consideration of $75 million. We plan to continue to purchase shares to the value of approximately $75 million per quarter in fiscal year 2025.”
[GLP-1 impact on device growth]: “Incredibly strong performance, as you noted—plus 12% devices year-on-year for the quarter in the US, plus 9% in Europe, Asia, rest of world ... I think we’re in the very early innings of the flow of extra patients from GLP-1s and from consumer tech ... The impact will start to happen over the coming one, three, five quarters where we will start to get those models working, but it will have a durable impact over the coming sort of one, three, five years and beyond.”
[Tariff impact]: “Even if there are blanket tariffs on China, there’ll be no impact on ResMed. We manufacture in Sydney, Singapore, Atlanta or beyond. So none of those will be included. It may impact one of our competitors from China as they import to the US through Florida ... If there was a USMCA sort of Mexico or Canada change from a Trump administration, which could happen and has been threatened, that could impact a competitor from New Zealand who does a lot of mask manufacturing in the Maquiladoras.”
[One-off device sales or pre-stocking ahead of tariffs]: “The short answer is no. We haven't had any of that sort of one-time stocking ... We do not believe ResMed will have any impact to us on any tariffs.”
This article was generated with the support of AI and reviewed by an editor.
Get the latest news and insights direct to your inbox