The Resmed Inc (ASX: RMD) share price is under the spotlight after reporting a strong result for June 2024.
Resmed aims for its digital health technology and cloud-connected medical devices to transform care for people with sleep apnea, chronic obstructive pulmonary disease (COPD) and other chronic diseases.
June 2024 update
The ASX healthcare share reported its results for the three months to 30 June 2024.
It reported quarterly revenue increased 9% to $1.2 billion. The gross profit margin improved by 350 basis points (3.50%) to 58.5%, which is a large increase in one year.
The company’s operating profit increased by 38% to $381.2 million, while the underlying operating profit (non-GAAP) rose 30% to $400.5 million.
Net profit after tax (NPAT) grew by 27% to $292.2 million, while underlying (non-GAAP) net profit rose 30% to $306.3 million.
With the conclusion of the June 2024 quarter, Resmed was also able to inform the market of its FY24 performance.
FY24 revenue rose 11% to $4.68 billion, underlying operating profit increased 21% to $1.48 billion, underlying net profit increased 20% to $1.14 billion and net profit went up by 14% to $1.02 billion.
What helped this performance?
The business said its fourth quarter and full-year performance demonstrated “strong performance across all sectors”
Resmed revealed ongoing patient and customer demand for its products and software is “incredibly strong”.
The company has been focusing on “operating excellence, ongoing cost discipline and profitable growth acceleration”, resulting in “gross margin expansion, strong operating leverage and double-digit growth in bottom-line profitability.”
Outlook for the Resmed share price
The Resmed CEO and Chair Mick Farrell said:
Nearly 2.5 billion suffer from major sleep health and breathing disorders. As the market leader in these significantly underpenetrated markets, we’re well-positioned as the clear leader to drive increased market penetration, demand generation, and accelerate growth for our businesses.
We’re laser-focused on increasing awareness with the fast-growth population of sleep-health-interested consumers, creating virtual pathways that expand access to therapies, while offering a broad portfolio of medical device products, software solutions, and beyond, as we deliver value for all ResMed stakeholders.
I don’t know what the long-term holds for ResMed, particularly when it comes to developments like Ozempic. But, the fact Resmed keeps growing is a great testament to management and the company’s attractiveness to patients.
However, it’s not one of the first ASX growth shares I’d buy with its recovered share price being high again.
