“It’s an ongoing, supply chain-constrained market, [but] we’re seeing the supply chain improving every week, month and quarter and access to specific electronic components we need have increased,” he told analysts on a conference call.
The $34 billion company reported a 7 per cent increase in net income in the half, growing to $US435.4 million.
On the back of the result, the company declared a US44¢ per share quarterly dividend, payable on February 9.
In the half, ResMed also completed its $US1 billion acquisition of Medifox Fan, receiving regulatory clearances to buy the German company.
The deal lets ResMed enter the German out-of-hospital market and was the third acquisition in the software space. Germany will be its first out-of-hospital market outside the US.
“Looking ahead, we remain focused on delivering lifesaving therapy solutions and accelerating the adoption of digital health in sleep apnoea, COPD, and out-of-hospital care,” Mr Farrell said.
“During calendar year 2022, we improved over 149 million lives, and we are well on our way to our goal of helping 250 million people sleep better, breathe better, and live higher-quality lives with outside-hospital care in 2025.”
ResMed’s big competitor Philips has been out of the market for about 18 months, with Philips forced to recall some of its devices over a risky component. It’s expected to have completed its product repair or replacements in early 2023.
The recall has benefited ResMed, which has picked up patients who could have otherwise gone to its competitors.
But, Mr Farrell was not concerned about the company’s rival returning to the market.
“They’ll be starting from 0 per cent new patient share. And they won’t be fighting against ResMed straight out of the gate, they’ll be competing with the tier two and three players,” he said.
“Investors and analysts are more worried about this than we are.”
CEO steps up as chairman
It was revealed on Friday as part of the results announcement that Mr Farrell will become chairman of ResMed, replacing his father Peter Farrell, who will be chair emeritus and remain a board member.
Mr Farrell has been CEO since March 2013 and also joined the board at that time.
“I am honoured to expand my role with ResMed as its next chair and to succeed my dad, Peter Farrell, whose vision, leadership, and guidance have helped ResMed become the largest outside-hospital, digital health company in the world,” he said.
The senior Mr Farrell, who started the company in 1989, said it was the right time for him to step aside.
“ResMed is on a clear growth path with strategic priorities intact; it’s the right time for me to step aside and reduce my commitments as chair, so I can devote more time to other boards and philanthropic interests.”
More to come.