Full Year 2026 Somnomed Ltd Earnings Call Transcript
Key Points
- EBITDA increased 19% to $10.9 million with margin improving to 9.6%.
- North America revenue grew 11% in constant currency, leading regional performance.
- Manufacturing capacity expanded by over 20% in FY26 and production times improved by more than 50% over two years.
- Virtus, a new product for OSA patients with bruxism, received positive early feedback during its controlled market release.
- Strong balance sheet with net cash of $16.8 million and positive operating cash flow after leases of $5.2 million.
- Second half revenue declined 7% reported (less than 1% constant currency) due to European market dynamics and FX headwinds.
- Europe, the largest region, saw constant currency revenue decline 1% due to reimbursement and referral pathway changes.
- APAC revenue fell 3% reported (2% constant currency) due to cost-of-living pressures on patient demand.
- Free cash flow was negative $0.6 million due to planned growth investments in manufacturing and R&D.
- FY27 guidance is delayed until November, with only high single-digit revenue growth and flat EBITDA margins targeted, reflecting uncertainty.
(audio in progress)
I will be your moderator for today's session. With me today are Karen Borg, who is CEO; and Ye-Fei Guo, who is CFO of SomnoMed. They will take us through the results presentation, which was lodged with the ASX this morning.
A bit of housekeeping before we kick off. Today's webinar is being recorded, including the Q&A, and we will post this on SomnoMed's website following the completion of the webinar. We will invite you to ask questions at the end of the presentation. (Operator Instructions).
For now, though, I'll pass over to Karen to kick off the presentation. Thank you, Karen.
Great. Thanks, Jane. Before we begin, I'd like to draw your attention to the disclaimer on the screen. Today's presentation contains forward-looking statements, which involve risks and uncertainties. Actual results may differ from those anticipated, and investors should not place undue reliance on these statements.
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