The share price of Nanosonics Ltd (ASX: NAN) surged 11.85% to $3.02 on Tuesday, following the company's announcement of its full-year FY24 results. The stock reached an intraday high of $3.08 as investors responded positively to the company's significant turnaround in the second half of the financial year. This performance highlights the recovery of this ASX healthcare stock.
Key Financial Highlights
For FY24, Nanosonics reported the following results:
- Total Installed Base: Increased by 7% to 34,790 units globally.
- Sales Revenue: Up 2% to $170 million.
- Recurring Revenue: Rose 9% to $121.8 million.
- Gross Profit: $132.4 million, up 1% from FY23.
- Gross Profit Margin: 77.9%, slightly down from 78.7% in FY23.
- Net Profit After Tax (NPAT): $13 million, a decrease of 35% compared to FY23.
- Free Cash Flow: $20.4 million.
- Cash and Cash Equivalents: $129.6 million as of 30 June, with no debt.
Strong Performance in the Second Half
Nanosonics highlighted a significant turnaround in the second half of FY24, with a 14% increase in revenue compared to the first half. This positive momentum led to an overall 2% increase in total revenue for the year.
Despite the revenue growth, NPAT was lower due to investments in the company’s long-term growth strategy.
Management’s Perspective
Nanosonics CEO and President Michael Kavanagh commented on the challenges faced during the year, noting that inflation impacted hospital capital budgets. The company experienced longer sales cycles, particularly in upgrading existing trophon EPR models, which resulted in lower-than-expected capital unit sales.
Looking Ahead
Nanosonics continues to focus on research and development, investing $32.8 million in FY24, an 11% increase from the previous year. The company is advancing its Endoscope Reprocessing program with CORIS and developing new products in ultrasound reprocessing and connectivity.
The CORIS product, which represents a significant opportunity in endoscope cleaning, achieved a major milestone with the filing of its de novo regulatory submission with the US Food and Drug Administration (FDA) in April.
Over the past year, the Nanosonics share price has decreased by 26.3%. In comparison, the S&P/ASX 200 Health Care Index (ASX: XHJ) has risen by 16.1%, and the ASX 200 Index has increased by 12.9%.