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

 

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