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ResMed lifts first half profit by 32%

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AAP

2013-01-25

Sleep disorder equipment supplier ResMed has booked a 32 per cent increase in its first half net profit, saying more people are becoming aware of the benefits of sleep disorder treatment.

ResMed makes a range of sleep masks and associated products which improve breathing for people who snore or have sleep apnoea.

The company, which is based in San Diego in the United States, on Friday reported a net profit of $US149.2 million for the six months ended December 31, 2012, compared to $US113.4 million in the prior corresponding period.

ResMed's revenue for the first half lifted 11 per cent to $US716.3 million.

ResMed's securities were 30 cents, or 7.01 per cent, higher at $4.58 on Friday.

ResMed chief executive Peter Farrell said that ResMed generated strong growth in the second quarter of the financial year as customers shifted to higher value flow generators such as the S9 Autoset and the S9 bilevels.

Mask and accessory sales remained strong.

"We finished (the first half) with another extremely robust quarter," Dr Farrell said during a market briefing for analysts.

"We believe that our continued market growth is being driven primarily by two factors: first, the fact that more people are finally beginning to accept that untreated sleep-disordered breathing is in fact a major public health problem.

"And secondly, our superior product quality, coupled with our full solution of offerings."

Revenue for the second quarter reached a record $US376.5 million - up 13 per cent on the prior corresponding period.

Net profit for the second quarter rose 24 per cent to a record $US77.9 million.

Revenue from the Americas in the second quarter rose by 16 per cent to $US211.8 million, and revenue outside the Americas rose 10 per cent to $US164.7 million.

Dr Farrell said that despite the economic uncertainty in Europe, Germany, France and the United Kingdom delivered solid quarterly results.

"Regardless of the challenging economic climate and concomitant fiscal restraints, the market is still focused on treatments that keep patients out of the hospital and keeps them healthy.

"Sleep disorder breathing treatment does this in spades."

There was also a continuing shift to higher-value air flow generators like the S9 Autoset and S9 bilevels, and mask and accessory sales remained strong.

ResMed is listed on the Australian Securities Exchange (ASX) and the New York Stock Exchange.

Trevor Chappell