The Nanosonics Ltd (ASX: NAN) share price has jumped after releasing some numbers for the FY23 half-year result.
Nanosonics is a business that describes itself as a leader in infection prevention solutions.
Nanosonics HY23 result
The ASX healthcare share revealed that total revenue for the half is expected to be approximately $81.6 million, up 35% year on year (or up 27% if the exchange rates hadn’t changed).
Nanosonics explained that the increase was largely driven by favourable pricing of both capital and consumables in North America as a result of the recent transition to a more direct sales model, together with growth in sales of consumables and trophon2 upgrade units. In other words, things are going well.
Not only did revenue jump, but the gross profit margin increased from 77% to 79%, with improved pricing and consumables growth.
Operating expenses only grew by 28% to $54.5 million, meaning that the profit margins improved because revenue grew quicker.
Earnings before interest and tax (EBIT explained) went up 215% to $10.7 million, while operating net profit improved by 245% to $11.4 million.
The global total installed base is expected to have grown to approximately 31,120 with the number of new units installed between the first quarter and second quarter increasing. Its presence in healthcare centres is increasing.
All of this is very positive for the Nanosonics share price.
Outlook for FY23
As a result of a good first half, management updated the thoughts about FY23.
The company is expecting to deliver total revenue growth of 36% to 41% (up from 20% to 25% growth).
The gross margin is expected to be between 77% to 79%, up from guidance of 75% to 76%.
Finally, operating expenses are expected to grow between 22% to 27%, up from the guided 15% to 18%.
Final thoughts on the Nanosonics share price
After heavy volatility in 2022, Nanosonics seems to be headed upwards again after a very strong first half.
The good news is now factored in, so I’m not sure if it’d be worth buying today. Nanosonics isn’t one at the top of my watchlist, but the company seems to be doing the right things to succeed.
However, there are other ASX growth shares I’d rather invest in for my own portfolio.
