Cochlear sales recover but Covid-19 risks remain high

Hearing implant manufacturer Cochlear has regained some of the massive slump in business as implant surgeries were cancelled due to the Covid-19 pandemic, but the company cautions business risks remain high.

In a first quarter trading update, Cochlear told investors that cochlear implant or bionic ear revenue in the quarter was 94 per cent of the previous corresponding period, while unit sales volumes were down 14 per cent.

Unit sales saw single digit growth as hospitals re-opened for elective surgery in developed countries, while emerging markets were down 40 per cent.

The company’s bone conduction hearing implants were 89 per cent of the previous corresponding period, with strong uptake of the Osia2 system in the United States and resumption of acoustic surgeries in the UK.

However the company said: “While current developed market surgery momentum is positive, we caution that there is still risk, noting that second waves of Covid-19 cases are likely to remain a reality for some time and may result in new restrictions to elective surgery, complicating recovery plans and timing.”

During the quarter the company’s services revenue from processor software downloads and remote care tools also recovered, with revenue 94 per cent of the previous corresponding period.

CEO Dig Howitt said the company was pleased with the pace of recovers across developed markets.

Howitt said: “We have a suite of new products that are just starting to be launched and are generating excitement and great feedback.”

Picture: Cochlear

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