Hearing implant maker Cochlear has boosted its dividend after reporting a 13 per cent increase in full-year profit to $277 million.
The company said total sales revenue for the 12 months to June 30 was up 7.0 per cent to $1.45 billion, with growth in its services business making up for a dip in the number of cochlear implants sold.
Cochlear will pay a fully franked final dividend of $1.75 a share, 15 cents more than in the previous corresponding period.
Revenue from services, which includes upgrades to the company’s sound processors, increased by 14 per cent in currency adjusted terms while its implant business dipped by 2.0 per cent using the same metric.
Cochlear said sales dropped in China and plummeted in Turkey and Argentina, with the fall in the latter two blamed on “recession and currency devaluation”, but increased in eastern Europe and the Middle East.
“After four years of strong growth driven by a combination of market growth and share gains, our developed markets units were in line with last year while emerging markets units declined,” Cochlear chief executive Dig Howitt said.
The company said it expected to again increase its net profit in the next financial year, offering a guidance of between $290 million and $300 million.
“We have a strong financial position that enables the business to fund its growth activities while rewarding shareholders along the way with a growing dividend stream,” Mr Howitt said.
Cochlear shares were up 4.80 per cent to $211.19 at 1140 AEST on Friday.