The Sydney-based company holds about 62 per cent of the global market for hearing implants, which it pioneered, and helps preserve hearing in patients with nerve deafness who cannot benefit from hearing aids.

The implants, which can costs tens of thousands of dollars but in some countries are partially government funded, are surgically placed in the inner ear to convert sound waves into electrical signals that stimulate nerves and provide hearing.

On Thursday Cochlear lifted full-year net profit 18 per cent to $223.6 million. Sales revenue grew 7 per cent to $1.2 billion, while earnings before interest and tax rose 20 per cent to $315.6 million, up from $262.6 million the previous year.

Dividend up

As the company moves into emerging markets including China, it forecast a net profit of $240 million to $250 million in 2018, an increase of 7 to 12 per cent, based on an Australian dollar of US80??.

Cochlear declared a final dividend of $1.40, fully franked, bringing its total dividend to $2.70, up from $2.30. After an 8 per cent surge in morning trade, by 2.30pm Cochlear's share price was up 6.10 per cent to $151.49.

In July Cochlear announced CEO Chris Smith will retire from his position in January. Cochlear's president and chief executive-elect Dig Howitt said Cochlear had grown its sales force and would ramp up consumer campaigns to build awareness among people with hearing loss about how its implants can help, especially seniors who may need to upgrade from typical hearing aids.

Nearly one out of every three people over the age of 65 is affected by hearing loss, and Cochlear estimated 37 million people could benefit from a Cochlear implant.

Market penetration

"The aging population and people wanting to live a quality life longer is helping us significantly," Mr Howitt said.

There are 450,000 Cochlear customers worldwide, and while Cochlear is the market leader, Mr Howitt said there was less than 5 per cent market penetration.

A World Health Organisation (WHO) report released in March said more than 5 per cent of the world's population - about 360 million people - have a disabling hearing loss (328 million adults and 32 million children).

Cochlear is already using Google search engine optimisation and Facebook algorithms to target consumers searching for hearing aids across the US. It is expanding that campaign into Australia, Western Europe and Japan.

Word-of-mouth referrals

Much of the advertising in the US happens via word-of-mouth. The company uses 3500 volunteers who use the product to share their stories with potential users.

While there was growing consumer awareness about its products - the WHO report estimates the global cost of untreated hearing loss at $US750 billion annually and recognises Cochlear implants as a cost-effective intervention (among other devices) -more than 50 per cent of adults with a moderate to profound hearing loss were not familiar with Cochlear implants, he said.

During the first half of the year, Cochlear Kanso, the company's first off-the-ear sound processor, and the Nucleus Profile Slim Modular electrode, the world's slimmest electrode, were launched across Europe and the US.

Mr Howitt said the Nucleus 7 Sound Processor, which allows users to stream sound from an iPhone, iPad and iPod touch directly to their sound processor, will have full commercial rollout in September.

China expansion

The company also hopes it can expand its footprint in China, which will include a manufacturing facility and research. Mr Howitt said it was the company's second largest market in terms of units sold.

The Chinese government is one of the biggest buyers of Cochlear implants, purchasing 4500 to 5000 a year.

During the year the company invested $152 million, 12 per cent of sales revenue, in R&D, and said it would launch a pipeline of new products over the coming years.

Mr Howitt urged the Turnbull government to ensure Australia's tax concessions and corporate tax rate remained competitive, otherwise companies such as Cochlear would be forced to do more business offshore.

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