Cochlear Plc Ord (CHEOF) Q2 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

by and welcome to the Cochlear Limited Half Year 25 Result Analyst and Media Briefing. All participants are in a listen only mode. There will be a presentation followed by a question and answer session. If you would like to ask a question you'll need to press the star key followed by the number 1 on your telephone keypad. I'd now like to hand the conference over to Mr. Dick Howitt, CEO and President. Please go ahead. Good morning everyone and thanks for joining for our Half Year Results presentation. So here with me today have Stu Sayers and Sarah Tom. And Stu, who was our CFO until the end of December and is now President of Asia Pacific and Latin America, will talk about the result because it's the result for the last half. Sarah, as our new CFO, is here with me as well. Okay, so thanks for joining. Let's get underway. And we have our mission up front because... That does guide all that we do at Cochlear and it also sets out our longer run ambition and underpins our long-term strategy for growth. So looking back at the first half of this year, overall we were pretty happy with the outcome but clearly as you look into it, there's some mixed results in there. So strong cochlear implant revenue growth at 13%, acoustics revenue very strong at 22%, and services, which we'll obviously talk more about, declining by 12%, but all of that giving us a net sales increase of 6% in constant currency. Our underlying net profit moved pretty much in line with sales on a reported basis, with our profit up 7% to $206 million. Gross margin that Stu will talk more about in line with our targets and our operating expenses up 10%, so a bit faster than sales and that's not unusual for us early in the year as we continue to invest into R&D and very much into driving growth. Balance sheet r...