Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


F&P Healthcare 1H profit rises 18%, beating guidance

F&P Healthcare 1H profit rises 18%, beating guidance, on record sales, wider margins

Nov. 22 (BusinessDesk) – Fisher & Paykel Healthcare beat its guidance with an 18 percent gain in first-half profit, making record sales while keeping a rein on costs and widening its margins. Profit in the full-year would also beat its estimate.

Profit was $33.3 million, or 6 cents a share, in the six months ended Sept. 30, from $28.3 million, or 5.2 cents a year earlier, the Auckland-based company said in a statement. Sales rose 6 percent to $266.9 million.

The company’s gross margin widened to 54.3 percent from 52.5 percent as growth in cost of sales lagged behind revenue growth at 2 percent. F&P healthcare will pay a first-half dividend of 5.4 cents a share, unchanged from a year earlier.

The strongest sales growth came from the company’s respiratory and acute care division, where revenue climbed 9 percent to $142.9 million on demand for its RAC humidifier controllers and related consumables. The company’s RAC products warm and humidify gases used for mechanical ventilation, reproducing functions of the nose and upper airways.

“We are pursuing opportunities to increase the number of patients our devices can assist, by expanding from our traditional intensive care ventilation market into non-invasive ventilation, oxygen therapy, humidity therapy, neonatal respiratory care and surgery,” the company said.

Its obstructive sleep apnea products business lifted sales by 3 percent to $114.2 million in constant currency terms.

Assuming current currency exchange rates endure, full-year sales would be $545 million to $555 million and net profit in a range of $69 million to $72 million. That’s up from its August guidance of sales between $540 million and $550 million and profit of $65 million to $69 million.

The company lifted research and development spending by 7 percent to $21.3 million in the first half.

F&P Healthcare gets about 51 percent of its sales in US dollars, 22 percent in euros, 7 percent in Australian dollars and 5 percent in yen. During the first half, foreign exchange hedging gains contributed $21.2 million to operating profit, down from $22.2 million a year earlier.

Shares of the company last traded at $2.44 and have declined 3.6 percent this year. The stock is rated ‘outperform’ based on the consensus of seven recommendations compiled by Reuters, with a price target of $2.40.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Welcome Home: Record High Migration Stokes 41-Year High Population Growth

New Zealand annual net migration hit a new high in October as more people arrived from than departed for Australia for the first time in more than 20 years. More>>


Citizens' Advice Bureau: Report Shows Desperate Housing Situation Throughout NZ

CAB's in-depth analysis of over 2000 client enquiries about emergency accommodation shows vulnerable families, pregnant women and children living in cars and garages, even after seeking assistance from the Ministry of Social Development and Housing New Zealand. More>>


Speaking For The Bees: Greens Call For Neonicotinoid Pesticide Ban

The National Government should ban the use of controversial pesticides called neonicotinoids after evidence has revealed that even at low doses they cause harm to bee populations, the Green Party said today. More>>


Science Awards: NZAS Celebrate NZ Scientific Achievements

The Marsden Medal is awarded for a lifetime of outstanding service to the cause or profession of science, in recognition of service rendered to the cause or profession of science in the widest connotation of the phrase. This year’s medal is awarded to Dr Mike Andrews. More>>


Court Rules: Affco 'Unlawfully' Locked Out Meat Workers

The note says the full court found for the plaintiffs, "that is that the defendant locked out the second plaintiffs unlawfully and that it breached s 32 of the Act by acting otherwise than in good faith towards the plaintiffs while collective bargaining was still going on." More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news