FPH Reports Record Half Year Net Profit, Up 34%

Friday 22nd November 2013

Fisher & Paykel Healthcare Corporation Limited (NZSX:FPH, ASX:FPH) today reported record net profit after tax of NZ$44.5 million for the six months ended 30 September 2013, an increase of 34% compared to the first half last year.

Operating revenue for the half year was a record NZ$303.9 million, 14% above the prior comparable period as a result of strong revenue growth in the company’s two major product groups. Respiratory and acute care (RAC) product group operating revenue grew 15% to NZ$164.1 million and Obstructive Sleep Apnea (OSA) product group operating revenue grew 15% to NZ$131.2 million.

An interim dividend of 5.4 NZ cents per ordinary share, carrying full New Zealand imputation credit, will be paid on 19 December 2013.

“We are pleased with the record results achieved for the half year, with both of our major product groups delivering strong growth”, commented Fisher & Paykel Healthcare’s CEO, Mr Michael Daniell.

“This is a reflection of our strategy to increase the range of applications for our technologies and to extend the range of products we provide for use in the care of each patient. An increasing number of clinicians and homecare providers are now choosing our devices to help improve patient outcomes and efficiency of care.

“Robust growth in our RAC product group was driven by particularly strong demand for our respiratory systems which help to improve care and outcomes in non-invasive ventilation, oxygen therapy, humidity therapy and surgery. Growth in consumables revenue from those applications increased 29% in constant currency.

“The roll-out of our Eson nasal, Pilairo nasal pillows and Simplus full face masks was a key contributor to OSA mask constant currency revenue growth of 19%, compared to the first half last year. This month, we have introduced the Simplus and new Pilairo Q masks into the United States, with positive early acceptance by homecare providers and users.

“ICON+, our new flow generator range, was introduced into our major markets during the half and contributed to an encouraging 12% constant currency growth in total flow generator revenue in the second quarter”.

Outlook for FY2014

“Our strategic direction remains consistent as we focus on developing innovative products, increasing the number of patients who can benefit from our products, extending our range of products and growing our international presence.

“We expect our underlying revenue growth to be robust for the remainder of the year, driven by growing demand for a broad range of new products and new applications for our products.

“We continue to expect net profit after tax to be in the range of NZ$90 million to NZ$95 million for the 2014 financial year, based on an exchange rate of 0.83 for the NZD:USD for the remainder of the year, despite exchange rates moving unfavourably since our last earnings guidance update in August. We expect operating revenue to be in the range of NZ$610 million to NZ$625 million”, concluded Mr Daniell

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