The Nanosonics Ltd. (ASX: NAN) share price went nuts yesterday, shooting up more than 35% in response to the company’s 2019 financial report.
Nanosonics is a medical technology company with its flagship product being the trophon EPR system. The trophon system disinfects ultrasound probes with rapid efficiency while claiming to reduce error and increase efficiency.
What Did Nanosonics Report?
The healthcare company revealed it achieved record full-year sales of $84.3 million, an increase of 39% compared to last year. Nanosonics reported continued strong growth of its global installed base, which grew by 18% to 20,930 units.
Capital sales rose 29% to $32.8 million and consumable & service revenue increased by 47% to $51.5 million compared to last year.
During the year, Nanosonics broadened its geographical footprint through an expanded distribution agreement with GE Healthcare to include Denmark, Finland, Norway, Spain and Portugal as well as new distributor agreements in Switzerland and Israel.
Nanosonics also said that trophon2 was launched during the year into North America, Australia and Europe.
In Asia, Japanese market development is ongoing with the establishment of a Nanosonics entity in Japan, the regulatory approval of trophon2 and a distribution agreement signed with GE Healthcare Japan.
Management also revealed that considerable investment has been made in new product development with important milestones met for the roll out of the next ‘significant’ new product targeted by the end of FY20, subject to regulatory approval.
All of the aforementioned positive news helped net profit after tax (NPAT) grow by 137% to $13.6 million. The market consensus was for a net profit of $10.27 million, so Nanosonics heavily outperformed against expectations in this regard.
Is It Time To Buy Nanosonics Shares?
Management are expecting installed base growth at a similar rate in FY20 compared to FY19.
All of the investing and growth that Nanosonics is experiencing will take a little bit of time to turn into revenue and profit growth, with FY20 profit heavily weighted towards the second half.
The share price reaction yesterday has already adjusted for the performance of Nanosonics, so there’s probably no quick money to be made on this result. However, the company is clearly one to keep watching with growing profit and an increasingly global earnings base.
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At the time of publishing, Jaz does not have a financial interest in any of the companies mentioned.