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

 

F&P Healthcare first-half profit rises 4%

F&P Healthcare first-half profit rises 4%, lifts forecast for annual earnings

By Tina Morrison

Nov. 21 (BusinessDesk) - Fisher & Paykel Healthcare, the medical device maker, increased first-half profit 4 percent, widened its margins, and lifted its forecast for full-year earnings to the top end of its range.

Net profit rose to $81.3 million, or 14.1 cents per share, in the six months ended Sept. 30, from $78.2 million, or 13.6 cents, in the same period a year earlier, the Auckland-based company said in a statement. The latest earnings included $9.8 million of patent litigation costs, and excluding those, profit would have risen 13 percent, it said. First-half revenue lifted 8 percent to $458.4 million. The company had forecast first-half revenue of about $460 million and profit of about $80 million.

Annual profit is likely to be between $185 million and $190 million, at the top end of its previous forecast of $180 million to $190 million, the company said today.

F&P Healthcare, which competes with Resmed and Respironics, lifted first-half sales of hospital products by 11 percent to $262.5 million and sales of homecare-based products by 4 percent to $191.3 million. Gross margin expanded by 116 basis points to 66 percent as it sold more profitable products and increased production in Mexico, where it now makes 35 percent of its products.

Managing director Lewis Gradon said the first half results were in line with the company's expectations and reflect "consistent momentum" across both its product groups. F&P Healthcare is about to start construction of a new manufacturing facility in Tijuana, Mexico, which is expected to be operational in mid-2018, he said.

In the latest period, F&P Healthcare increased research and development spending by 13 percent to $47 million.

"We have a number of new products that will be released over the next few years and intend that these products, along with our consistent growth strategy, will support sustainable and profitable growth over the long term," Gradon said.

The company will pay a first-half dividend of 8.75 cents per share on Dec. 20, an increase of 6 percent from the same period last year.

Its shares last traded at $13.88 and have gained 59 percent over the past year.

(BusinessDesk)

ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Retail: International Websites To Pay GST

New rules would be aimed at imported goods valued at or below $1,000. Customs would retain responsibility for collecting GST on imported parcels valued more than $1,000. More>>

ALSO:

High-Level Advice: PM’s Business Advisory Council Membership Announced

The Prime Minister’s Business Advisory Council brings together a mix of experts, six women and seven men with small to large business experience, from across New Zealand, to provide advice. More>>

ALSO:

Improving: Report Shows New Zealand Air Quality 'Good'

Our air 2018, produced by the Ministry for the Environment and Stats NZ, shows that while some previously known issues persist, progress has been made and levels of some pollutants are declining. More>>

ALSO:

Greenpeace: Govt Extends OMV Exploration Permit

The Government has just granted oil giant OMV a two-year extension to drill in the Great South Basin, despite issuing a ban on new oil and gas exploration permits in April. More>>

ALSO:

Collective Bargaining For Contractors: Working Group's Model For Screen Sector

A recommended model to allow collective bargaining for contractors in the screen sector has today been unveiled by the Government-convened Film Industry Working Group. More>>

ALSO:

Kauri Dieback: DOC Closing Tracks To Protect Trees

The Department of Conservation will close 21 tracks across kauri land to help prevent the spread of kauri dieback. An additional 10 tracks will also be partially closed and the open sections upgraded... More>>