ResMed is kicking off fiscal 2025 on a high note, delivering impressive growth across the board. Let’s dive into the highlights:
The Numbers
- Revenue: Up 11% year-over-year to $1.2 billion, driven by strong demand for sleep devices, masks, and Residential Care Software.
- Operating Profit: Soared 34%, with non-GAAP operating profit up 27%.
- Earnings: Diluted EPS reached $2.11 (+34% non-GAAP).
- Cash Flow: ResMed generated a healthy $326 million in operating cash flow, reflecting strong financial discipline.
What’s Driving the Growth?
- Global Demand:
- U.S., Canada, and Latin America: +11% growth, excluding Residential Care Software.
- Europe, Asia, and other markets: +10% growth, constant currency.
- Residential Care Software: +12% growth, with organic expansion leading the charge.
- Better Margins:
- Gross margin jumped 420 basis points, thanks to manufacturing efficiencies, lower component costs, and higher selling prices.
- Cost Discipline:
- Selling, General & Administrative (SG&A) expenses rose modestly by 7%, but as a percentage of revenue, they actually improved, down to 19.5% from 20.2% last year.
Celebrating 35 Years & Looking Ahead
ResMed isn’t just reflecting on past successes—they’re planning for the future. At their 2024 Investor Day, they unveiled an ambitious 2030 strategy:
- Helping over 500 million people achieve better health by 2030.
- Accelerating innovation in sleep and respiratory care, personalized solutions, and digital health.
Innovations to Watch
- AirTouch N30i Fabric Mask: Launching in the U.S. next week, this new mask prioritizes comfort with a breathable, fabric-wrapped design.
- AI-Powered Sleep Solutions: Personalized therapy options integrating with wearables, giving patients a tailored sleep health journey.
Capital Management
ResMed remains committed to shareholder returns:
- Paid $78 million in dividends this quarter.
- Repurchased 222,000 shares for $50 million.
CEO’s Perspective
ResMed’s CEO, Mick Farrell, summed it up best:
“We’re building on our 35 years of growth to transform sleep and breathing health globally. Our momentum this quarter shows we’re on track to deliver better care, simplify the health journey, and empower millions to live healthier lives.”
Bottom Line
ResMed continues to show it’s a leader in sleep and respiratory care. With strong financial performance, cutting-edge innovation, and a bold 2030 vision, the company is not just looking to sustain growth—it’s aiming to redefine healthcare at home.
