Image source: © Phartisan | Megapixl.com 

Highlights 

  • ResMed offers cloud-connected devices and digital health technologies that treat people with COPD, sleep apnea and other chronic disease outside the hospital 
  • RMD registered double digit growth in income and revenue during the financial year 2023 
  • Increased demand for RDM’s products and decreased competitive supply resulted in 23% increase in the company’s June quarter revenue

Medical device manufacturer ResMed Inc. (ASX: RMD) offers innovative solutions that treat people outside the hospital. Cloud-connected devices and digital health technologies assist people with COPD, sleep apnea and other chronic diseases at their homes or setting of their choice. The provider of out-of-hospital software platforms has recorded double-digit growth in income and revenue during the financial year 2023 (FY23).  

During the reported period, the company registered 18% year-on-year growth in revenue to USD 4,222.9 million. The net income grew by 15.1% on YoY to USD 897.5 million, and total assets increased by 32.4% to USD 6,751.7 million during the same period. Demand for the RMD’s cloud-connected platform, patient interface and software solutions underpinned the company’s performance in FY23.  

Here’s the historical financial trend of RMD- 

 

Recent business update 

On 3 August 2023, the company reported revenue of USD 1.1 billion in June 2023 quarter, a 23% increase over the previous corresponding period. During the quarter, its net income increased by 18% YoY to USD 229.7 million. The growth was underpinned by increased demand for RDM’s products and decreased competitive supply.  

The company announced a dividend of USD 0.048 per share for the second half of the financial year.. The dividend declared is 9% higher than the previously announced dividend. The dividend’s record date is 17 August 2023, and the pay date is 21 September 2023.  

Top 10 shareholders of RMD 

The top 10 shareholders of RMD together have around 7.23% of the company’s total shareholding, while the top four have about 4.93% stake. First Sentier Investors (Hong Kong) Limited and Vanguard Investments Australia Ltd. have the highest stake in the company, with a shareholding of approximately 1.66% and 1.25%, respectively. 

 

Outlook 

ResMed is focused on growing therapy adherence to enhance quality-of-life and patient outcomes. By 2025, the company targets to help 250 million lives.  

Share performance of RMD 

RMD shares closed 4.63% down at AUD 27.42 per share on 9 August 2023, with a market capitalisation of AUD 42.28 billion. Including today’s share performance, RMD’s share price dropped by 19.49% in the last 12 months and recorded a fall of 20.17% in the last one month. 

The 52-week high of RMD is AUD 36.370 apiece, recorded on 1 May 2023, and the 52-week low is AUD 27.360 apiece, recorded on 8 August 2023.  

Worth mentioning here is that RMD’s share price fell by 3.150% on 4 August 2023, when the company released its fourth quarter results.   

 

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

Note 2: The reference date for all price data, currency, is 9 August 2023. The reference data in this report has been partly sourced from REFINITIV.