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#Business Update
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Added 3 years ago

04-Nov-2020:  Nanosonics business update

I do not hold NAN, but I do note that their share price rose +12.5% (+64c to $5.76/share) today on the back of this update.

Here's what they had to say:

Update on new trophon installed base and end user consumable purchases for the first four months of FY21

Nanosonics (ASX: NAN), a leader in infection prevention solutions, provides an update on new installed base and end user consumable purchases for the first four months of FY21 in the context of current market conditions during the ongoing COVID-19 pandemic.

On 25 August 2020 the Company reported that in June FY20 global unit sales of consumables to end customers trended back to approximately 80% of FY20 Q1 to Q3 levels as hospital departments resumed activities. In addition, the Company reported that the number of new trophon units installed in Q4 of FY20 was 46% lower compared with the prior corresponding period.

Key points for first four months of FY21

  • Unit purchases of consumables (Sonex/NanoNebulant) by end customers in the four months to 31 October 2020 were up 4% compared with the prior corresponding period, which preceded the COVID-19 pandemic.
  • Unit purchases of consumables (Sonex/NanoNebulant) by end customers in the four months to 31 October 2020 were up 25% compared with the last four months of FY20, during which the major impacts of COVID-19 were experienced.
  • In the four months to 31 October 2020, the number of new trophon units installed was 91% of the prior corresponding period with North America at 90% and EMEA at 119%.
  • The number of new trophon units installed in first four months of FY21 was up 16% compared with last four months of FY20. During this period, North America was up 14% and EMEA was up 64%.

“While we continue to face uncertainties and the potential for further lockdowns and disruptions associated with the COVID-19 pandemic, it is pleasing to see the rate of recovery in the first four months of FY21, demonstrating the ongoing strength in the underlying fundamentals of the business”, said Michael Kavanagh, Nanosonics’ Chief Executive Officer and President.

“During the second wave of COVID-19 in North America, we have observed that hospitals in that region appear better equipped to manage the impact of the pandemic. Accordingly, ultrasound procedure volumes requiring high level disinfection did not seem to be impacted to the same degree as in the first wave. However, this does not guarantee that future waves will follow the same pattern in North America or other regions.

“Purchases of consumables (Sonex/NanoNebulant) by end customers continued to recover in the first four months of FY21 as hospital departments reopened and ultrasound procedure volumes increased towards pre Q4 FY20 levels. Purchases of consumables by end customers were up 25% compared with the last four months of FY20, which was the peak impact period associated with the first wave of COVID-19. Unit purchases of consumables by end customers in the first four months of FY21 were also up 4% compared with prior corresponding period, which preceded the COVID-19 pandemic.

“Improvements in access to hospitals together with remote customer engagement resulted in a positive recovery in the number of new trophon units installed in the first four months of the year compared with the last four months of FY20. The number of new trophon units installed globally was up 16% in the first four months of FY21 compared with the last four months of FY20. This recovery was experienced in both North America, which was up 14% and Europe, which was up 64%.

“As reported on 25 August 2020, the number of new units installed globally in Q4 of FY20 was 46% lower than prior corresponding period. Importantly, in the first four months of FY21, the number of new units installed globally reached 91% of prior corresponding period, with North America at 90% and EMEA at 119%.

“Despite ongoing periods of uncertainty we remain optimistic about the future and investments in our growth agenda continue across the business as we look to further expand our geographical footprint and product portfolio. We remain committed to doing everything we can as an infection prevention company to support all of our customers during these unprecedented times.”

A more detailed business update will be provided at the Company’s Annual General Meeting, which is scheduled for 24 November 2020.

Michael Kavanagh

CEO / President

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