Cochlear (ASX:COH) posts a $238 million loss

Company News

by Rachael Jones

Cochlear (ASX:COH) had a strong start to FY20 with cochlear implant units growing 13 per cent in the first half.

The impact of patent litigation expenses and Covid-19 on sales revenue during the second half, however, resulted in the reporting of a net loss of $238.3 million.

The recommencement of surgeries is positive, and the $1.1 billion capital raising has strengthened the balance sheet.

Sales revenue declined 6 per cent to $1.4 billion, with the first half up 9 per cent and second half down 22 per cent.

Reported net loss of $238.3 million includes $416.3 million in patent litigation expenses and $24.2 million in innovation fund gains after-tax.

In March Cochlear suspended the dividend until trading conditions improve.

Shares in Cochlear (ASX:COH) are trading 8.66 per cent higher at $215.48.