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

 


UPDATED F&P Healthcare 1H profit rises 18%, shares gain

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

(Updates shares, adds investors comment starting in eighth paragraph)

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. Also in constant currency terms, mask revenue growth of 11 percent in the second quarter as it rolled out its new Pilairo nasal pillow and Eson nasal mask.

Shares of the company climbed 2.5 percent to $2.50. The stock is rated ‘outperform’ based on the consensus of seven recommendations compiled by Reuters, with a price target of $2.40.

“Health-care companies tend to be cyclical with their products,” said Mark Warminger, a portfolio manager at Milford Asset Management. “With a new product you get the momentum back.”

Its new mask products “have been very well received,” he said.

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.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Half Empty: Fonterra's 2017 Opening Forecast Below Expectations

Fonterra Cooperative Group raised its forecast farmgate milk payout for next season by less than expected as the world's largest dairy exporter predicts lower prices will crimp production and supply will pick up. The New Zealand dollar fell. More>>

ALSO:

Pest Control: Mouse Blitz Team Leaves For Antipodes

The Million Dollar Mouse project to rid Antipodes Island of mice is underway with the departure of a rodent eradication team to the remote nature reserve and World Heritage Area. More>>

Gongs Got: Canon Media Awards & NZ Radio Awards Happen

Radio NZ: RNZ website The Wireless, which is co-funded by NZ On Air, was named best website, while Toby Manhire and Toby Morris won the best opinion general writing section for their weekly column on rnz.co.nz and Tess McClure won the best junior feature writer section. More>>

ALSO:

Pre-Budget: Debt Focus Risks Losing Opportunity To Stoke Economy

The Treasury is likely to upgrade its forecasts for economic growth in Budget 2016 next week but Finance Minister Bill English has already signalled that more of his focus is on debt repayment than on fiscal stimulus or tax cuts... More>>

ALSO:

Fulton Hogan's Heroes: Managing Director Nick Miller Resigns

Fulton Hogan managing director Nick Miller will leave the privately owned construction company after seven years in charge. The Dunedin-based company has kicked off a search for a replacement, and Miller will stay on at the helm until March next year, or until a successor has been appointed and a transition period completed. More>>

ALSO:

Gordon Campbell: On Electricity, Executions, And Bob Dylan

The Electricity Authority has unveiled the final version of its pricing plan for electricity transmission. This will change the way transmission prices (which comprise about 10% of the average power bill) are computed, and will add hundreds of dollars a year to power bills for many ordinary consumers. More>>

ALSO:

Half Empty: Fonterra NZ, Australia Milk Collection Drops In Season

Fonterra Cooperative Group says milk collection is down in New Zealand and Australia, its two largest markets, in the first 11 months of the season during a period of weak dairy prices. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news