SomnoMed hits 28 per cent volume growth in Q3

THE ROADHOUSE PHARMACY: SomnoMed Limited (ASX: SOM) announced it has increased sales volume by 28.3 per cent in Q3, compared to the same quarter in the previous year.

SomnoMed provides diagnostic and treatment solutions for Sleep-related Breathing Disorders including obstructive sleep apnea, snoring and bruxism.

The company’s total for units sold for the three months to the end of March 2014 were 11,010.

After growth of 13.1 per cent in Q1 and 23.6 per cent in Q2, the company said the growth of 28.3 per cent achieved in Q3 confirms the trend of SomnoMed’s accelerating sales volumes achieved in its global operation.

Total units sold for the nine months were 31,465 units, with growth of 21.8 per cent over the same period in the previous year.

Total revenues generated during the third quarter amounted to $6.5 million and 50 per cent more than in the previous year (30 per cent on constant exchange rates), bringing the year to date revenues to a total of $19 million and is 43 per cent up on last year.

“This is the highest volume growth achieved in a March quarter for the last three years,” SomnoMed executive chairman Dr Peter Neustadt said in the company’s announcement to the Australian Securities Exchange.

“We were able to see significant improvements in our US sales.

“Whilst the year on year growth in Q1 was only 2.8 per cent, Q2 growth improved to 10.1 per cent, whereas Q3 has now produced a growth of 22.8 per cent. Volume achieved in the March quarter in the US has set a new sales record.”

Neustadt identified a number of programs in the dental and medical markets in the US, which were initiated during 2013 as factors contributing to the results.

Another was the launch of the company’s SomnnoDent® Herbst, which he said has been successful and is likely to continue to show growing acceptance.

“Europe continues to generate strong growth in all the four European regions in which we are directly distributing our SomnoDent® products,” Neustadt continued.

“Pleasing results were achieved in APAC, where growth in Q3 came in at 17.3 per cent, the highest growth achieved for several years.

“This is due to marketing initiatives in Australia and New Zealand, good growth in Japan and the results of our Korean operation, which is now under our own control.”

Website: www.somnomed.com.au