Company Interview / Nanosonics scrubbing up for scale

Key points:

Nanosonics reports $9.6m net profit and 9% revenue growth for the half year Operating margin rises to 27%, driven by strong US unit upgrades and recurring revenue CORIS, the automated endoscopy reprocessing platform, achieves key regulatory milestones Company remains focused on scalable growth and disciplined cost management

ASX-listed Nanosonics (ASX:NAN) posted a half-year net profit of $9.6 million, with revenue rising 9% to $102 million. Michael Kavanagh states this reflects continued growth in capital sales, consumables, and service revenue. While no dividend has been paid, Kavanagh points to an expanded operating margin of 27% as a strong indicator of performance. Unit growth remains robust, with total installations up 20% compared to the previous corresponding period, particularly driven by upgrades in the United States.

Kavanagh highlights operational milestones, especially the commercialisation progress of the company’s new innovation, CORIS. Coris is positioned as a transformational product within the global endoscopy reprocessing market, offering automated and more effective cleaning of complex endoscopes—a process that has previously relied on manual methods. With regulatory approvals now in place across Europe, the UK, Australia, and initial market releases underway, Kavanagh suggests Coris could become as significant as, or even larger than, the existing trophon business.

Despite challenges from currency fluctuations and the impact of US tariffs on capital equipment, Kavanagh remains committed to Australian manufacturing for capital equipment, while consumables manufacturing increasingly shifts to the US to serve core markets. He underlines the resilience of the underlying trophon business, double-digit revenue growth, scalable operations, and disciplined operating expenditure as signs of a strong ongoing growth outlook.