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

 

BusinessDesk: APN's NZME Sees Future In Paywalls, Growth In Digital Sales

APN News & Media has touted a single newsroom concept for its NZME unit in New Zealand, similar to what Germany's Die Welt uses, saying an 'integrated sales proposition' is helping it win market share, including ... More>>

Labour Party: Global Milk Prices Now Lowest In 6 Years

The latest fall in the global dairy price has brought it to the lowest level in six years and shows there must be meaningful action in tomorrow’s Budget to diversify the economy, says Labour’s Finance spokesperson Grant Robertson. “Dairy prices ... More>>

BusinessDesk: NZ Inflation Expectations Creep Higher In June Survey

May 19 (BusinessDesk) - New Zealand businesses lifted their expectations for inflation over the next two years, sapping any immediate pressure on the Reserve Bank to cut interest rates, and prompting the kiwi dollar to jump higher. More>>

BusinessDesk: Lower Fuel Costs Drive Down NZ Producer Input, Output Prices

May 19 - Producer input and output prices fell in the first quarter, mainly reflecting lower fuel costs and weakness in prices of meat and dairy products. More>>

Media: Fairfax Media NZ Announces Senior Editorial Team

Fairfax Media New Zealand has today confirmed its new editorial leadership team, as part of a transformation of its newsrooms aimed at enhancing local and national journalism across digital and print. More>>

Science: Flavonoids Reduce Cold And Cough Risk

Flavonoids reduce cold and cough risk Research from the University of Auckland shows eating flavonoids – found in green tea, apples, blueberries, cocoa, red wine and onions – can significantly reduce the risk of catching colds and coughs. The research, ... More>>


BusinessDesk: RBNZ House Alert Speech The Catalyst For Government Action

Prime Minister John Key all but conceded that pressure from the Reserve Bank of New Zealand for concerted action on rampant Auckland house prices was one of the main catalysts for the government's weekend announcements about tightly ... More>>

BusinessDesk: How To Fall Foul Of The New Housing Tax Rules: Tips From IRD

Just because you rented out your investment property doesn't absolve you from paying tax, says the Inland Revenue Department in a summary of commonly made mistakes by non-professional property investors when it comes to their tax liability.More>>

Legal: Superdiversity Law, Policy And Business Stocktake Announced

Mai Chen, Managing Partner at Chen Palmer New Zealand Public and Employment Law Specialists and Adjunct Professor of Law at the University of Auckland, today announced the establishment ... More>>

Housing: More House Price Gains Expected

House price expectations remain high, with a net 56% of respondents expecting house prices will increase. Fears of higher interest rates are fading, consistent with the RBNZ’s signals this year. Affordability and a lack of houses for ... More>>

TDDA: State-Of-The-Art Drug Testing Laboratory To Open In Auckland

World leading drug testing agencies, The Drug Detection Agency (TDDA) and Omega Laboratories, open New Zealand laboratory More>>

Network: Bigpipe Launches Ultra-Fast Broadband Into Wellington

Bigpipe Launches Ultra-Fast Broadband into Wellington Naked broadband provider Bigpipe has extended its national reach, announcing today, the launch of its unlimited UFB offering into Wellington. The Spark Venture business is giving Wellingtonians the ... More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news