Strong Financial Performance in Q3
Group revenue for the March quarter was $1.29 billion, an 8% headline increase and 9% in constant currency terms. Operating profit for the quarter increased by 13% underpinned by revenue growth and gross margin expansion.
Gross Margin Expansion
Gross margin increased by 140 basis points to 59.9% in the March quarter. The increase was driven by manufacturing and logistics efficiencies, favorable shifts in product mix, and component cost improvements.
New Product Launches
The first full commercial rollout of Nite Owl and the launch of AirSense eleven version of ZPAP Tx in the US market. These products are expected to enhance diagnostic capabilities and patient care.
Investment in Manufacturing and R&D
ResMed is opening a new manufacturing facility in Calabasas, California, which will double US manufacturing capacity. The company continues to invest 6-7% of its revenue into research and development.
Recognition for Innovation
ResMed was named in the Lexus Nexus list of the top one hundred global innovators for its market-leading efforts in driving pioneering innovation.
Significant Cash Flow and Share Buyback Program
Cash flow from operations for the quarter was $579 million, and the company plans to increase its ongoing share buyback program to $100 million per quarter.