Director and Senior Equity Analyst at RBC Capital Markets
Craig Wong-Pan is a Director and Senior Equity Analyst at RBC Capital Markets, specializing in the Australian Healthcare and MedTech sectors. He covers leading companies such as ResMed, with an impressive analyst success rate exceeding 88% and an average return of over 12%, placing him in the top one-third among global analysts and consistently issuing outperform ratings and research with actionable price targets. Wong-Pan began his career at CLSA before joining RBC in 2021, where he has established a strong reputation for his sector expertise. He holds recognized professional securities credentials, with industry registration and compliance in major financial regulatory bodies.
Craig Wong-Pan of RBC Capital Markets inquired about the drivers of the strong 10% growth in Rest of World device sales and whether large tenders contributed.
CEO Michael Farrell explained that while tenders can cause fluctuations, the growth outpaced the mid-single-digit market rate due to broad strength. CFO Brett Sandercock added that Europe and China were notable contributors to the strong performance.
Craig Wong-Pan of RBC Capital Markets inquired about the drivers of the strong 10% device growth in the Rest of World segment, asking if large tenders were a significant contributor.
CEO & Chairman Michael Farrell explained that while there can be fluctuations from tenders or fleet sales in markets like Japan, the growth outpaced the mid-single-digit market expectation. CFO Brett Sandercock added that strong results in Europe and improved growth in China were key contributors to the robust performance.
Craig Wong-Pan from RBC noted the slowdown in SaaS revenue growth and asked for details on the performance of different businesses within the segment and whether double-digit growth is still expected.
Executive Michael Farrell explained that while the company doesn't break out specific growth rates, the MEDIFOX business in Germany is growing ahead of the segment's 8% rate, with Brightree performing in line. He acknowledged lower growth in areas like skilled nursing facilities. Farrell reiterated guidance for high single-digit revenue growth for the overall SaaS business but emphasized a focus on achieving double-digit net operating profit growth through portfolio management and targeted investments.
Craig Wong-Pan asked for the key drivers behind the 9% device growth in the Rest of World segment and questioned the contribution from higher-priced AirSense 11 sales.
CEO Michael Farrell stated that while there was some positive price/mix impact from the ongoing AirSense 10 to AirSense 11 transition, the "vast majority" of the 9% growth was driven by volume. He credited strong execution in demand generation and competitive performance across the 140 countries in that region.