ResMed shares finished strongly on Friday rising over 4% after a quarterly update revealed a significant boost in revenue.
Thanks to increased demand for sleep and respiratory care devices, along with increased demand following a product recall by competitor Philips earlier this year, Resmed revealed a 20% revenue jump to $US904 million.
Revenue in the U.S., Canada, and Latin America, excluding Software as a Service, grew by 22 percent, while Revenue in Europe, Asia, and other markets grew by 21 percent. Software as a Service revenue increased by 6 percent, due to continued growth in resupply service offerings and stabilising patient flow in out-of-hospital care settings.
Net income for the quarter was up 14 per cent to $US203.6 million, predominantly attributable to the strong sales numbers.
During the quarter, Resmed also concluded a settlement agreement with the ATO, fully resolving a transfer pricing dispute for all prior years since 2009. ResMed previously recognized a tax reserve in FY21 in anticipation of the settlement of $238.7 million. The company noting that the settlement provides closure for historic Australian tax matters and greater clarity into the future.
Mick Farrell, ResMed CEO commenting, “Despite constantly evolving market dynamics, we continue to pivot to meet the needs of our stakeholders, driving sustainable long-term growth, and ensuring that we are investing strongly in medical device research and development, as well as digital health innovation that will unlock value for all of our customers. I’m incredibly proud of our global teams that are working with providers and physicians in the most unusual times across 140 countries, to get products directly into the hands of patients who need our solutions most.”