2024-02-19 12:26:11 ET
Cochlear Limited (CHEOF)
Q2 2024 Results Conference Call
February 18, 2024 06:00 PM ET
Company Participants
Dig Howitt - Chief Executive Officer, President
Stu Sayers - Chief Financial Officer
Conference Call Participants
Andrew Goodsall - MST
Steve Wheen - Jarden
David Low - JPMorgan
Saul Hadassin - Barrenjoey
Sean Laaman - Morgan Stanley
Lyanne Harrison - Bank of America
Gretel Janu - E&P
David Bailey - Macquarie Bank
David Stanton - Jefferies
Mathieu Chevrier - Citi
Craig Wong-Pan - Bank of Canada
Shane Storey - Wilsons Advisory
Andrew Paine - CLSA
Presentation
Operator
[Operator Instructions] I would now like to hand the conference over to Mr. Dig Howitt, CEO and President. Please go ahead.
Dig Howitt
Thank you all for joining, and good morning, and good to have you with us. We'll get underway with -- I will present and then open up for questions after that.
So, let's get started, and we always like to start with our mission. It not only reminds us of what we're doing and why we're doing, but it's actually at a high level is a guide to our strategy, looking at the need to raise awareness and change our hearing losses treated and ensuring that we continue to innovate and support our customers throughout their lifetimes.
Okay. Let's jump into the results, obviously, it was a good first half result, particularly driven by the strength of Cochlear implant units, they were obviously higher than we expected with 14%.
Growth in services grew strongly as we expected close to the launch of Nucleus 8. But I think underlying the result is further indications that our long-term strategy of raising awareness and getting increasing referrals, particularly for older people is having some impacts. We continue to want to see this impact run for longer.
But again, in this result, there are some indicators that, that strategy is having an impact on overall industry growth. So, this led to a strong top line that carried through to our net profit, up 75% in reported terms to $192 million, obviously, a little bit lower growth in constant currency.
And importantly, our pre-cloud margin at 18%, which is in line with our long-term goal and 17% once we include those cloud expenses And importantly, with those investment in cloud computing and broader work that we're doing across the organization on operating processes and our culture.
These are all aimed at underpinning our future growth and building the foundations of the company for us to be a bigger company and to be able to support ongoing growth.
So, on that front in the last half, we went live with 2 major systems, our human capital management system and our commercial systems, CRM and marketing. So, important milestones in the progress of that investment in cloud computing and the underpinning of our long-run growth....
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Cochlear Limited (CHEOF) Q2 2024 Earnings Call Transcript