FPH posts record profit
November 18, 2009
Fisher & Paykel Healthcare Corporation Limited (FPH) announced a record profit of NZ$37 million for the six months ended 30 September 2009, 31% above the previous corresponding period (“pcp”). The company attributed the strong performance to very strong revenue growth in its obstructive sleep apnea (“OSA”) product group, continuing strong demand for its respiratory products and favourable foreign exchange hedging results.
The company reported an 18% increase in revenue for the same period to a record of NZ$251.4 million, which included OSA revenue rising by 31% to NZ$118.8 million.
CEO, Mr Michael Daniell, said constant currency operating revenue growth for OSA masks and flow generators was 20%, as the company gained market share with its new premium products.
“Growth in underlying demand for our respiratory humidifier systems was pleasing, considering the exceptional first half last year which included backorders and substantial orders for contracts in the United States,” Mr Daniell said.
”Allowing for those sales last year, we estimate that underlying constant currency revenue growth for our respiratory and acute care product group was approximately 14%.”
Fisher & Paykel said research and development expenses increased by 23% over the pcp, while selling, general and administrative expenses grew 18%, or 14% in constant currency terms.
The company’s director approved an interim dividend for the half year ended 30 September 2009 of 5.4 NZ cents per share.
Looking ahead, Fisher & Paykel said it expects to achieve operating revenue of approximately NZ$500 million and profit after tax of approximately NZ$65 million to NZ$70 million for the remainder of FY10, based on an average NZD:USD exchange rate of 0.74.
“We are very encouraged by the better than expected growth we have achieved in the first half, which has offset the effect of the appreciating NZ dollar,” Mr Daniell said.
”We expect underlying growth to increase substantially in the second half, with accelerating growth in respiratory product demand.”
As at 1018 AEDT, Fisher & Paykel shares were unchanged at $2.43.
The company reported an 18% increase in revenue for the same period to a record of NZ$251.4 million, which included OSA revenue rising by 31% to NZ$118.8 million.
CEO, Mr Michael Daniell, said constant currency operating revenue growth for OSA masks and flow generators was 20%, as the company gained market share with its new premium products.
“Growth in underlying demand for our respiratory humidifier systems was pleasing, considering the exceptional first half last year which included backorders and substantial orders for contracts in the United States,” Mr Daniell said.
”Allowing for those sales last year, we estimate that underlying constant currency revenue growth for our respiratory and acute care product group was approximately 14%.”
Fisher & Paykel said research and development expenses increased by 23% over the pcp, while selling, general and administrative expenses grew 18%, or 14% in constant currency terms.
The company’s director approved an interim dividend for the half year ended 30 September 2009 of 5.4 NZ cents per share.
Looking ahead, Fisher & Paykel said it expects to achieve operating revenue of approximately NZ$500 million and profit after tax of approximately NZ$65 million to NZ$70 million for the remainder of FY10, based on an average NZD:USD exchange rate of 0.74.
“We are very encouraged by the better than expected growth we have achieved in the first half, which has offset the effect of the appreciating NZ dollar,” Mr Daniell said.
”We expect underlying growth to increase substantially in the second half, with accelerating growth in respiratory product demand.”
As at 1018 AEDT, Fisher & Paykel shares were unchanged at $2.43.
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