Reporting Season

ResMed hikes dividend as profits climb; shares tumble as growth stocks hammered

Fri 12 Aug 22, 10:21am (AEDT)
Respiratory mask

Key Points

  • ResMed grew its revenue by 11.9% in FY22, slightly ahead of Morgans expectations
  • The respiratory industry faces an ongoing product shortage due to a Phillips recall

ResMed (ASX: RMD) continues to flex its market leading position in the sleep apnea and respiratory space, growing FY22 revenues by 12% to US$3.6bn, slightly ahead of analyst expectations.

ResMed shares tumbled -5.8% in early trade. Prior to the selloff, the stock rallied 25.6% from late May lows.

Results at a glance:

Full year



Change %

Revenue (US$m)




Gross margin (%)




Free cashflow (US$m)




Net profit (US$m)




Dividend per share (US cents)




Source: ResMed | Table: Market Index

Ongoing PAP shortage

A major product recall from Philips sparked an industry-wide shortage in positive airway pressure (PAP) machines last June.

Philips recalled over 20 PAP models due to sound-reducing foam in its devices that could potentially break down and enter users' airways or release harmful chemicals.

During the quarter, ResMed said it introduce its "newest device to meet the needs of an industry crisis in PAP supply, the AirSense 10 Card-to-Cloud solution." In addition to other new product launches across Europe and the United States.

Still, Morgans flagged that the global semiconductor shortage "has crimped growth, shaving US$100m of incremental revenue from Philips' device recall on supplier decommits and enacted force majeure."

Looking ahead, Morgans expects supply constraints to somewhat alleviate next year, projecting FY23 revenue growth of 8.4% to US$4.34bn.

Margins and dividends on the rise

Gross margins improved by 110 basis points in the fourth quarter as higher average selling prices and favourable product mix changes offset higher freight and manufacturing costs.

ResMed raised its quarterly dividend by 5% to 44 US cents per share. The stock will go ex-dividend on Wednesday, 17 August.

ResMed price chart
ResMed share price chart


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Written By

Kerry Sun

Content Strategist

Kerry holds a Bachelor of Commerce from Monash University. He is an avid swing trader, focused on technical set ups and breakouts. Outside of writing and trading, Kerry is a big UFC fan, loves poker and training Muay Thai. Connect via LinkedIn or email.

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