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Highlights

  • Nanosonics is an Australian infection prevention companyengaged in the manufacturing and distribution of trophon® ultrasound probe disinfector and its related products
  • In 1HFY24, revenue of NAN stood at AUD 79.6 million and profit after income tax stood at AUD 6.2 million
  • Yarra Funds Management Limited has the highest stake in NAN with a shareholding of ~6.29%

Nanosonics Limited (ASX: NAN) is an ASX-listed healthcare company which specialises in infection prevention and control solutions. The company is renowned for its flagship product, trophon® EPR, which is used for the high-level disinfection of ultrasound probes. The focus is on research, development and commercialization of infection control and decontamination products and related technologies.

In the first half of the financial year 2024 (1HFY24), the company reported 2% YoY fall in its revenue to AUD 79.6 million and 40% YoY decrease in profit after income tax to AUD 6.2 million. During the reported period, consumable/ service revenue jumped 4% YoY to AUD 57.7 million.

In 1HFY24, capital sales were lower than the expectations as consumers deferred purchases because of constraints in hospital capital budget.

Sales pipelines grew continuously during the period for both installed base and upgrades of trophon2 units.

Top 10 shareholders of NAN

The top 10 shareholders of NAN have around 40.24% stake in the company, while the top four have 23.44% shareholding. Yarra Funds Management Limited and Stang (Maurie) have maximum stake in the company with a shareholding of ~6.29% and ~6.26%, respectively.

Recent business update

Through an ASX update dated 25 March 2024, the company informed about the change in the indirect interest of Marie McDonald with the purchase of 18,606 shares for AUD 49,999.90­­.

On 15 March 2024, the company notified that Dr Steven Farrugia, NAN’s chief technology officer has opted to take retirement from this position. Farrugia has more than 30 years of expertise in development of medical device, which includes seven years of experience at NAN. Following this development, the company has begun the search for a suitable successor. Dr Farrugia would offer guidance and insight to the company for next 12 months, during the transition period.

Outlook

In the upcoming half, the company expects to see 6 – 15% growth in revenue over 1HFY24. The expected range of revenue in FY24 is AUD 164 – 171 million, expected range of gross profit margin is 76-78% and expected growth of operating expenses is 9-11%.

The focus is on tapping opportunities arising from the growing sales pipeline for new installed base and upgrades.

Share performance of NAN

NAN shares closed 1.11% higher at AUD 2.74 apiece on 27 March 2024. Including today’s gain, NAN’s share price dropped by almost 43% in the past one year and declined by 37.73% in the past three months.

The 52-week high of NAN is AUD 5.80, recorded on 27 April 2023, while the 52-week low is AUD 2.59, recorded on 29 February 2024.

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 27 March 2024. The reference data in this report has been partly sourced from REFINITIV.