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.