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

 

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Crown Accounts: NZ Government Deficit Smaller Than Expected In First Half

The New Zealand government's operating deficit was smaller than expected in the first six months of the financial year, as the consumption and corporate tax take rose ahead of forecast in December, having lagged estimates in previous months. More>>

ALSO:

Fruit & Veg Crackdown: Auckland Fruit Fly Find Under Investigation

The Ministry for Primary Industries (MPI) is investigating a find of a single male Queensland fruit fly in a surveillance trap in the Auckland suburb of Grey Lynn... MPI has placed legal controls on the movement of fruit and some vegetables outside of a defined circular area which extends 1.5km from where the fly was trapped in Grey Lynn. More>>

ALSO:

Scoop Business: Westpac NZ Reaches $2.97M Swaps Settlement

Westpac Banking Corp’s New Zealand unit has agreed to pay $2.97 million in a settlement with the Commerce Commission over the way the bank sold interest rate swaps to farmers between 2005 and 2012. More>>

ALSO:

Going Dutch: Fonterra Kicks Off $144M Partnership With Dutch Cheese Maker

Fonterra Co-operative Group, the world’s largest dairy exporter, has commissioned a new dairy ingredients plant in Heerenveen, in the north of the Netherlands, its first wholly-owned and operated ingredients plant in Europe. More>>

ALSO:

Scoop Business: NZ Retail Sales Beat Estimates

New Zealand retail sales rose more than expected in the fourth quarter, led by vehicle-related transactions, food and beverages, adding to evidence that cheap credit and a growing jobs market are encouraging consumers to spend. More>>

ALSO:

Delivery Cuts Go Ahead: 'Government Money Grab' From NZ Post

"It's a money grab by the Government as the shareholder of New Zealand Post" says Postal Workers Union advocate Graeme Clarke about the changes announced by NZ Post. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news