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

 

F&P Healthcare posts record FY sales, profit growth stalls

F&P Healthcare posts record FY sales, profit growth stalls as margins shrink

By Hannah Lynch

May 25 (BusinessDesk) - Fisher & Paykel Healthcare, which makes respirators and sleep apnea products, reported record annual sales while profit growth, excluding a year-earlier tax charge, stalled as margins contracted.

Profit was $64.1 million in the 12 months ended March 31, from about $52.5 million a year earlier, when it took a one-time tax charge of $11.5 million. Excluding the charge, earnings were little changed. Sales climbed 2 percent to a record of $516.7 million.

Shares of F&P Healthcare dropped 4.5 percent to $2.32 after the results, which showed its gross margin shrank to 53.2 percent from 54.9 percent while its operating margin slipped back to 18 percent from 19.3 percent. Cost of sales in the year rose 6 percent, three times greater than sales growth.

The company gets 52 percent of sales in US dollars and the strength of the kiwi dollar sapped the value of overseas revenue when it was brought home.

Respiratory and acute care product sales jumped 18 percent to US$218.6 million, though in kiwi dollar terms the gain was 6.9 percent to $270.8 million. For OSA products, US dollar sales climbed 6.6 percent to US$184.9 million, while in local currency terms they fell 3.2 percent to $229 million. Total operating revenue in US dollars rose 12.4 percent.

Chief executive Michael Daniell forecast 2013 operating revenue would rise to a range of $540 million to $560 million, while profit would be $62 million to $70 million. The forecasts assume the New Zealand dollar trades in a range of 75 US cents to 80 cents for the remainder of the current year.

The company will pay a final dividend of 7 cents a share, unchanged from a year earlier. It will be paid on July 6.

“We expect our underlying revenue growth to begin to accelerate this year, particularly in the second half, as a number of new products, including new OSA masks, are introduced around the world," Daniell said. "We also anticipate a continuation of strong growth in demand for our products, which are used in a broad range of respiratory and surgical applications."

The company said it expects to improve its constant currency operating margin, with faster growth in higher margin products and cost reductions.

F&P Appliances invested $68 million in manufacturing, product tooling and replacement equipment in the latest year. That was predominately used to increase the quality of its Mexico manufacturing plant to cope with a ramp up in manufacturing. In Auckland, the company added a third building to its site at a cost of $47.4 million.

As at March 31, the company had a mix of foreign exchange contracts and collar options valued at about $450 million. It closed out foreign exchange contracts in the 2010 and 2012 financial years, which will contribute $17.8 million in the 2013 financial year and $21.3 million the year after in operating profit.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Banking: Westpac NZ Lowers Merchant Fees For Small Businesses

Westpac NZ is rolling out a new merchant fee pricing structure that will lead to cost savings for more than 10,000 small and medium Kiwi businesses, and could make contactless transactions more widely available for customers. On 1 September, most ... More>>

REINZ: Million Dollar Plus Property Sales Increase 11.7% Nationally

The number of properties sold around the country for one million dollars or more during the first half (H1) of 2020 increased by 11.7% compared to H1 2019, with 5,426 million-dollar plus properties sold (up from 4,858 in H1 2019) according to the Real ... More>>

Waste: Government To Regulate Plastic Packaging, Tyres, E-Waste

The Government is stepping up action to deal with environmentally harmful products – including plastic packaging, tyres and e-waste – before they become waste. As part of the wider plan to reduce the amount of rubbish ending up in landfills, ... More>>

ALSO:

Bankers Association: Banking Becomes First Living Wage Accredited Industry

Banking has become New Zealand’s first fully living wage accredited industry, leading to nearly 1800 employees and contractors moving onto the living wage and gaining greater economic independence for them and their families. As of today, all ... More>>

ALSO:

Economy: Funding For 85% Of NZ Not-For-Profit Entities Impacted By COVID-19

Results of a recent Institute of Directors poll show that 85% of board members on not-for-profit organisations say COVID-19 has moderately or significantly affected their funding. The ‘pulse check’ conducted in the first two weeks of July looked ... More>>

Volcano Detection: Eruption Alert System Would Have Given 16 Hours’ Warning At Whakaari

An alert system that could have given 16 hours’ warning of last year’s eruption at Whakaari/White Island is ready for deployment, University of Auckland scientists say, with warning systems for Ruapehu and Tongariro the next priority. ... More>>


Property: Queenstown Rents Experience Biggest Drop In Seven Years

Rental prices in the Queenstown-Lakes district saw the biggest annual percentage drop in seven years after falling 28 per cent on June last year, according to the latest Trade Me Rental Price Index. Trade Me Property spokesperson Aaron Clancy said ... More>>

Seismology: The Quiet Earth

As many daily activities came to a halt during lockdown, the Earth itself became quiet, probably quieter than it has been since humans developed the technology to listen in. Seismologists have analysed datasets from more than 300 international ... More>>

RNZ: James Shaw Says Kiwibank, Not Ministers Should Decide On Investors

Climate Change Minister James Shaw says Kiwibank's decision to stop doing business with companies dealing in fossil fuels is the right one. More>>

ALSO:

FMA: Kiwis Confident Financial Markets Will Recover From COVID-19, Plan To Increase Investments

Despite the majority (60%) of investors experiencing losses as a result of COVID-19, the outlook on investing remains positive, according to a Financial Markets Authority (FMA) survey. Most Kiwis (71%) were optimistic that the pandemic will pass eventually ... More>>

FIRST Union: Warehouse Using Covid For Cover As Extensive Restructure Makes Everyone Worse Off

(FIRST Union comments on The Warehouse consultation and proposed restructure) 'Unfortunately the Warehouse have done the disappointing thing and used Covid-19 to justify a bunch of operational business decisions that will leave hundreds of workers without jobs ... More>>

ALSO:

Stats NZ: Mixed Performance By Regions Leaves National Emissions Picture Unchanged

Approximately two-thirds of New Zealand’s regions recorded decreases in their total greenhouse gas emissions, while one-third of regions saw increases between 2007 and 2018, Stats NZ said today. “While some regions reduced their emissions, ... More>>

RNZ: Economic Activity And Business Confidence Bouncing Back

Two surveys from ANZ show business confidence and economic activity have rebounded, but uncertainty about the future remains extreme. More>>

ALSO: