Cochlear (ASX:COH), maker of the world's best-selling hearing implant, has recorded a 19 per cent increase in annual net profit.

The company, which said the dynamics of the hearing implant industry remain positive, booked annual net profit of $155.2 million for 2009/10 after $130.5 million in the previous corresponding period.

Revenue was up 6 per cent in the year, while earnings before interest and tax (EBIT) grew 20 per cent.

Cochlear announced a final dividend of 105 cents, an increase of 11 per cent from 95 cents in 2008/09.

The company expects its latest generation hearing implant, Nucleus 5, and a software update to drive sales expansion in the current year.

"The launch of the Nucleus 5 has resulted in a game change across multi dimensions, including recipient hearing performance, miniaturisation, scalable manufacturing and the building blocks for scaling the clinical pathway."

"Nucleus 5 will continue underpinning growth in the 2011 financial year, and software enhancement available towards the end of the calendar year will facilitate upgrade processor sales."

"The dynamics of the implantable hearing device industry remain positive in terms of cost-effective, life-changing outcomes driving market growth." Cochlear said in a statement.

Cochlear shares were down as much as $1.03, or 1.5 per cent, in early trade to $70.25, compared with a flat start for the overall market.