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

 


F&P Healthcare FY earning beat guidance, sees more gains

F&P Healthcare beats 2013 guidance, forecasts boost in 2014 profit; shares gain to 2 ½ year high

By Tina Morrison

May 23 (BusinessDesk) - Fisher & Paykel Healthcare, which makes breathing masks and respirators, expects to beat analyst expectations for 2014 profit as it surpassed its own guidance for 2103 profit today as a result of revenue growth, improved gross margins and operating efficiencies. The shares rose to a two-and-a-half year high.

Profit is likely to be $85 million to $90 million in the year ending March 13, 2014, managing director Michael Daniell said in a statement today. That's more than the $79 million-to-$83 million range expected in a survey of seven analysts by Merlin Consulting.

The stock rose 2.6 percent to $3.11, and has gained 23 percent this year.

F&P Healthcare said 2013 profit rose 20 percent to $77.1 million in the year ended March 31, ahead of its February guidance of about $75 million. The company, which competes with Resmed and Respironics, boosted operating revenue to a record $556.3 million in 2013 on strong demand for its respiratory systems and new masks to treat the condition obstructive sleep apnea.

"We expect our underlying revenue growth to continue to be robust this year, driven by a broad range of new products and applications," Daniell said in the statement. "Constant currency operating margin is expected to increase as a result of growth in higher margin differentiated products, cost reductions and other efficiencies."

The company expects operating revenue of $610 million to $630 million in 2014, Daniell said. The 2014 forecasts are based on the New Zealand dollar trading between 80 US cents and 85 US cents for the remainder of the year as about half its operating revenue is derived in US dollars.

In US dollar terms, sales of respiratory products rose 12 percent to US$245.5 million in 2013 while sales of devices to treat obstructive sleep apnea increased 3.9 percent to US$191.9 million.

F&P Healthcare expects to outlay $40 million in capital expenditure in 2014. That's down from $62 million in 2013 when it spent on new equipment to increase manufacturing capacity, new product tooling, replacement equipment and $33.6 million to complete a third building on its Auckland site.

Making an increased quantity and range of products at its plant in Mexico contributed to an increase in the company's gross margin, Daniell said. The gross margin jumped to 55.3 percent in 2013 from 53.2 percent the year earlier.

Research and development spending increased 9 percent in 2013 and current new projects include masks, flow generators, humidifier systems and respiratory and acute care consumables.

The company spent 6 percent more on selling as it expanded in North America, Europe and the Asia Pacific regions.

The company's diluted earnings per share increased to 13.8 cents in 2013 from 11.7 cents the year earlier. It will pay a final dividend of 7 cents a share on July 5, unchanged from the year earlier.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news