Saul Hadassin

Saul Hadassin from Barrenjoey asked about the drivers of the low-double-digit U.S. mask growth, seeking to understand the balance between market share gains and stronger overall industry resupply.

Answer

CEO & Chairman Michael Farrell attributed the strong performance to both market share gains and enhanced resupply programs. He highlighted product innovation, such as the AirTouch N30i and F40 masks, as a key driver of competitive wins, while also noting that improved resupply efforts through platforms like Brightree and MyAir are boosting volumes beyond the high-single-digit market growth rate.

Saul Hadassin from Barrenjoey asked about the drivers of the strong U.S. mask growth, seeking to understand the balance between market share gains and overall resupply strength.

Answer

CEO Michael Farrell attributed the outperformance to both factors. He highlighted product innovation, like the AirTouch N30i mask, as a key driver of share gains, while also crediting enhanced resupply programs through platforms like Brightree and MyAir for boosting overall growth beyond the market rate.

Saul Hadassin from Barrenjoey questioned why the Q4 gross margin guidance was 'broadly consistent' rather than materially higher, given favorable current foreign exchange rates.

Answer

CFO Brett Sandercock acknowledged the question, explaining that the 'broadly consistent' guidance provides some flexibility. He then conceded that if current foreign exchange rates, particularly the Euro, hold, the bias for the Q4 gross margin would likely be 'north of' the 59.9% reported in Q3.

Saul Hadassin questioned the working capital performance, specifically asking about the drivers behind the inventory build during the quarter.

Answer

CFO Brett Sandercock explained that the inventory increase was a deliberate part of a strategy to rebalance freight methods. By increasing stock-in-transit via sea freight to mitigate higher air freight costs, inventory levels temporarily rose. He expects this to stabilize after the second quarter.