Cochlear (ASX:COH) revenue drops 60%

Company News

by Katrina Bullock

Implantable hearing device provider Cochlear (ASX:COH) reports that sales revenue across the business declined by around 60 per cent in April year on year.

Cochlear implant unit sales declined by around 80 per cent across developed markets, with most elective surgeries postponed across the United States and Western Europe, as hospitals prioritise their Covid-19 responses.

Elective surgeries have continued in South Korea and, until recently, Japan. Surgeries in China recommenced in late February and recovered quickly, they are now approaching pre-covid run rates.

Cochlear’s liquidity position has been strengthened through its $1.1 billion raising and $225 million increase in debt facilities. However the business is currently cash flow negative, and expects this will continue in the coming months.

Shares in Cochlear (ASX:COH) are trading 1.69 per cent higher at $184.72.

Katrina Bullock

Finance News Network
Katrina is a respected TV journalist, as well as a renowned presenter and award winning lawyer. She holds a Bachelor of Laws (Honours 1st class, division 1), a Bachelor of Business (with Distinction) and is currently undertaking a PhD in Law focused on stock exchange disclosures and corporate governance. She began her career as a corporate lawyer in an Australian top tier commercial law firm and is currently the General Counsel of Greenpeace Australia Pacific. In 2020 Katrina was named one of the 30 best lawyers in Australia under 30 by Lawyer's Weekly.