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

 


F&P Healthcare says earnings growth may stall in 2015

F&P Healthcare says earnings growth may stall in 2015 as currency rates bite

By Tina Morrison

May. 23 (BusinessDesk) - Fisher & Paykel Healthcare Corp, which exports 98 percent of its breathing masks and respirators, expects profit growth to stall in the coming year as it takes a $32 million hit to operating profit, reflecting reduced hedging contracts and less favourable currency spot rates.

The Auckland-based company said profit rose 26 percent to $97.1 million in the year ended March 31, in line with guidance, and it expects "similar" profit in the 2015 year. Operating revenue rose 12 percent to $623.4 million in 2014 on increased volumes and is expected to be about $640 million in 2015, it said. The forecasts are based on the New Zealand dollar trading at 86 US cents.

F&P Healthcare, which competes with Resmed and Respironics, improved profitability in 2014 with gross margin rising to 58.6 percent from 55.3 percent, as it benefited from new products and gains from operating efficiencies by ramping up production in Mexico. Still, earnings are being crimped as the value of export revenue is reduced when converted into New Zealand dollars as the local currency holds at an "elevated" level. Foreign exchange hedging gains contributed $54.6 million to the company's $143.5 million operating profit in 2014.

"The company continues to have favourable foreign exchange hedging in place although substantially less than in the 2014 year," chief executive Michael Daniell said. "Despite the challenge of this large roll-off in hedging, we have momentum in both of our product groups and we believe that we can offset that headwind in the 2015 financial year."

In the past year, F&P Healthcare posted a 12 percent gain in operating revenue from its respiratory humidification products to $336.9 million, and a 15 percent increase in obstructive sleep apnea products to $270 million.

The company will pay a dividend of 7 cents a share on July 4.

Shares in F&P Healthcare fell 2.2 percent to $4.08, having gained 8.3 percent so far this year.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Maritime: Navigation Safety Review Raises Big Issues For The Govt

Shipping Federation: "The reports makes it clear that the ratification of the Maritime Labour convention (MLC) is long overdue. Only when the MLC is ratified will Maritime NZ be able to inspect and enforce the labour conditions on international ships visiting our ports." More>>

ALSO:

100 Years After Einstein Prediction: Gravitational Waves Found

For the first time, scientists have observed ripples in the fabric of spacetime called gravitational waves, arriving at the earth from a cataclysmic event in the distant universe. This confirms a major prediction of Albert Einstein’s 1915 general theory of relativity and opens an unprecedented new window onto the cosmos. More>>

ALSO:

Farming: Alliance Plans To Start Docking Farmer Payments

Alliance Group, New Zealand's second-largest meat cooperative, plans to start withholding some stock payments to its farmers from next week to bolster its balance sheet and force suppliers to meet their share requirements. More>>

ALSO:

Gambling: SkyCity First Half Profit Rises 30%, Helped By High Rollers

SkyCity anticipates the Auckland business will benefit from government gaming concessions which were triggered on Nov. 11 in recognition of SkyCity’s $470 million Convention Centre development. Morrison said the concessions would allow the Auckland business to lift its activity during peak period, noting it had a record revenue week over the Christmas and New Year period. More>>

ALSO:

Money For Light: Kiwi Scientists Secure Preferential Access To Synchrotron

Science and Innovation Minister Steven Joyce today announced a three-year investment of $2.8 million in the Australian Synchrotron, the largest piece of scientific infrastructure in the Southern Hemisphere, to secure preferential access for Kiwi scientists. More>>

Telco Industry Report: Investment Hits $1.7 Bln A Year

Investment in the telecommunications sector is $1.7 billion a year, proportionately one of the highest levels in the OECD, according to a report released today on the status of the New Zealand sector. More>>

ALSO:

PGPs: New Programme Sets Sights On Strong Wool

A new collaboration between The New Zealand Merino Company (NZM) and the Ministry for Primary Industries (MPI), announced today, aims to deliver premiums for New Zealand's strong wool sector... More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news