SomnoMed's 1H FY24 Report

SomnoMed Limited (ASX: $SOM) has reported a 13% increase in revenue for the half-year ended 31 December 2023, reaching $45.1 million. The company's core business revenues showed a solid start with a 13% growth, despite interruptions to manufacturing capacity during the second quarter of FY24. The EBITDA decreased to $(1.1) million due to the manufacturing interruptions and continued investment in sales and marketing resources globally. SomnoMed also announced the implementation of a cost reduction program to strengthen margins and profitability.

Executive Commentary on 1H FY24 Performance

SomnoMed's co-CEO, Ms Amrita Blickstead, expressed disappointment over the manufacturing interruptions during the second quarter, which impacted revenue growth. Despite these challenges, the company continues to experience growth in key markets, with positive reimbursement trends in Europe and strategic sales improvement expected in North America. The focus is now on the cost reduction program to eliminate significant costs over the next six months.

Summary of 1H FY24 Report and Outlook

SomnoMed's 1H FY24 report reflects a 13% revenue growth, driven by strong performances in Europe and North America, despite manufacturing interruptions. The company's focus on the cost reduction program and the development of Rest Assure technology are expected to improve profitability in FY25. SomnoMed remains optimistic about the second half of FY24, with a revenue growth target of at least 12% and an EBITDA goal of at least $3 million. The submission of Rest Assure technology for FDA review marks a significant milestone in the company's technological transformation, expected to drive prescriptions and increase reimbursement.