ResMed Inc. (ASX: RMD)
ResMed Inc. aims to enhance the quality of life for patients and the management of chronic conditions by reorienting services away from hospitals and providing them at home. Their cloud-based health software and devices have created connected care that improves patient outcomes as well as the efficiency of the healthcare services provided by health providers. Though ResMed has been popular primarily for its continuous positive airway pressure (CPAP) system, the company has also started to market other products, for instance diagnostic respiratory range, ventilators and their accessories, in order to address different respiratory related conditions.
In fiscal year 2024, ResMed implemented a new operating model to foster growth by creating dedicated leadership in key areas like Product, Revenue, and Marketing. The strategy is to facilitate the speed of the product development process and concentrate more on the customers’ needs. The firm intends to allocate substantial resources to research and development and in the quarter that ended on 30th September 2024, the company will spend $79.5 million which is 6.5% of the net revenues. Their latest product, the AirSense 11, features enhanced technology like touch screens and digital updates to improve user experience.
ResMed recorded net revenues of $ 1.2 billion for the quarter ended September 30, 2024, registering a growth of 11% over the previous year. The gross margin also grew, increasing from 54.4% to 58.6%. The increase in diluted earnings per share with strong growth in operating profit also saw a rise in the latter to $2.11. Cash and cash equivalents reached $426.4 million, demonstrating strong financial health as the company continues to expand. ResMed declared $0.53 dividend per share and $77.9 million overall demonstrating its commitment to value return to its shareholders.
In addition to financial successes, ResMed celebrated its 35th anniversary and introduced the AirTouch N30i, a new fabric mask designed for comfort and effectiveness in CPAP therapy. This product, along with other patient-centric innovations incorporating digital wearables and artificial intelligence, highlights ResMed’s commitment to enhancing the therapy experience for sleep apnea patients and driving improvements in healthcare technology overall.
Qantas Airways Limited (ASX: QAN)
Qantas Group's trading performance for H1 FY25 aligns with expectations, supported by robust demand across both Qantas and Jetstar brands. Jetstar Domestic outperformed unit revenue forecasts due to higher-than-anticipated travel demand, while Qantas Domestic load factors and corporate travel demand show consistent year-over-year improvements. The Group now anticipates Domestic RASK growth of 3-5% for the first half, while international RASK guidance remains unchanged, with a projected decline of 7-10% compared to the prior period as international capacity returns. Qantas Loyalty continues to perform steadily, buoyed by the launch of Classic Plus Flight Rewards, contributing to the Group’s forecast of at least 10% growth in Underlying EBIT for FY25. However, initial fair value adjustments associated with the Classic Plus Rewards program are expected to impact earnings in H1 FY25. Despite this, Qantas Loyalty remains a key contributor to the Group’s dual-brand strategy, bolstering customer engagement and retention.
In light of ongoing geopolitical uncertainties, fuel prices remain volatile, with the Group estimating H1 fuel costs of approximately $2.55 billion, inclusive of hedging and carbon expenses. Qantas maintains a disciplined hedging strategy to mitigate price fluctuations and protect against fuel cost volatility. The Group has also implemented a $28 million “thank you” payment for its 27,000 employees in recognition of their continued efforts, further demonstrating a commitment to maintaining workforce engagement. Additionally, Qantas has made significant progress on its $400 million on-market share buyback, completing approximately 45% at an average price of $7.23, with completion anticipated by the end of the calendar year. The remaining $31 million buyback from H1 FY24 has also been concluded.
The performance across both Qantas and Jetstar underscores the resilience of the Group’s dual-brand strategy and its ongoing focus on building a sustainable, robust business. The strong demand in Jetstar’s domestic sector and the steady recovery of Qantas’s corporate travel segment highlights the Group's ability to capture market demand while strengthening shareholder returns over the long term. Qantas’s disciplined approach to cost management, revenue initiatives, and strategic investments positions the Group favorably for sustainable growth and shareholder value creation in a dynamic market environment.
(Source: Company’s Report)
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