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Fisher & Paykel Healthcare Corporation (FPH) has announced a net profit after tax for the first half of $107.3 million, a 12 per cent increase from the same period in the previous financial year
The East Tamaki-based dual-listed medical device company this week reported its results for the first half of the 2024 financial year.
For the six months ended September 30, 2023, total operating revenue was $803.7m, a 16 per cent increase from the prior corresponding period in both reported and constant currency. Net profit after tax for the first half was $107.3m, a 12 per cent increase from the same period in the previous financial year, or a 22 per cent increase in constant currency.
“Our first half result indicates a continuation of stable ordering patterns in our hospital business and a robust performance for homecare,” said managing director and chief executive officer Lewis Gradon.
In the hospital product group, which includes humidification products used in respiratory, acute and surgical care, revenue for the first half was $487.5m. This marks an increase of 11 per cent on the prior comparable period, and 11 per cent in constant currency. Hospital new applications consumables grew 19 per cent in constant currency.
“Apparent growth rates this financial year will be impacted by Covid-19 effects throughout last year,” said Gradon.
“We continued to see strong demand for hospital consumables across the product portfolio in the first half, and hardware demand was solid. We remain pleased with the progress we are making on changing clinical practice.”
In the homecare product group, which includes products used in the treatment of obstructive sleep apnea (OSA) and respiratory support in the home, revenue was $314.4m, a 26 per cent increase over the prior comparable period, or 25 per cent in constant currency. OSA masks and accessories revenue increased 28 per cent in constant currency.
“Evora Full [a new compact full face therapy mask] has been available in the United States for more than a year and it continues to see impressive demand and positive customer feedback,” said Gradon.
“We are set to build on this momentum next year as our revolutionary new F&P Solo mask is rolled out beyond New Zealand and Australia.”
Gross margin was 60.5 per cent, up 65 basis points, or 192 basis points in constant currency, compared to the first half of the 2023 financial year.
“Headwinds such as freight rates and manufacturing inefficiencies continue to ease, while inflationary raw material and manufacturing costs remain key areas of focus for our teams,” said Gradon.
“We remain confident in our ability to return to our long-term target of 65 per cent within three to four years.”
The company’s directors have approved an interim dividend of 18 cents per ordinary share, up from 17.5 cents per share in the prior corresponding period. The interim dividend, carrying full New Zealand imputation credit, will be paid on December 18, 2023 with a record date of December 6, 2023. The company’s dividend reinvestment plan remains available to eligible shareholders with a 3 per cent discount applying to this interim dividend.
Looking ahead
“At current exchange rates, we expect operating revenue for the 2024 financial year to be approximately $1.7 billion and net profit after tax to be in the range of approximately $250m to $260m.
“Historically, sales of our hospital consumables are typically higher in the second half, reflecting seasonal patterns of hospitals,” said Gradon.
“We are currently expecting that our revenue guidance approximation incorporates the range of pre-Covd historical seasonality in hospital consumables.”
Overview of key results for the first half of the 2024 financial year12% increase in net profit after tax to $107.3 million, 22% increase in constant currency.
16% increase in operating revenue to $803.7m, 16% increase in constant currency.
11% increase in hospital operating revenue to $487.5m, 11% increase in constant currency.
19% increase in constant currency for new applications consumables (products used in non-invasive ventilation, Optiflow nasal high flow and surgical applications) accounting for 70% of hospital consumables revenue.
26% increase in homecare operating revenue to $314.4m, 25% increase in constant currency.
28% increase in constant currency for OSA masks and accessories revenue.
Investment in R&D was 12% of revenue, or $96.9m.
3% increase in interim dividend to 18 cps (H1 FY23: 17.5 cps).
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