SomnoMed Limited (ASX: SOM), a company which creates devices to treat sleep apnoea and other breathing disorders, today reported it achieved 30% revenue growth in its 2018 financial year.
SomnoMed was founded in 2004 and has expanded its services into 27 countries, providing diagnostic and treatment solutions for sufferers of breathing conditions like snoring and bruxism. One of its devices offers a less intrusive alternative to some of the products provided by the likes of ResMed Inc. (ASX: RMD) and Fisher & Paykel Healthcare Corp Ltd (ASX: FPH).
In a public filing this morning, SomnoMed said its fourth quarter revenues were $17.4 million, up 22% from the same period in 2017.
SomnoMed’s three core operating regions in North America, Europe and Asia Pacific reported an increase in group revenue. However, weakness in the North American market continued to present challenges.
“It is believed that this is due to the changes in Medicare re-imbursement rules, as well as the increase in high deductible plans resulting in consumers delaying purchases,” SomnoMed’s update read.
The company said its Renew Sleep Solutions (RSS) centres continued to weigh on profitability.
SomnoMed reaffirmed it expects to report an operating loss (EBITDA) at the lower end of the range previously provided to the market, being $6.6 million to $7.4 million.
Pleasingly, the company said it expects to report 15% revenue growth in its 2019 financial year with improving profit margins.
SomnoMed plans to release its full year results in August.