Fisher & Paykel Healthcare Limited

Friday 31st July 2015

Fisher & Paykel Healthcare Corporation Limited (FPH.NZ) is a New Zealand-based designer, manufacturer and marketer of products and systems for use in respiratory care, acute care, and the treatment of obstructive sleep apnea. The Company has two product groups, respiratory and acute care (RAC), and obstructive sleep apnea (OSA). The respiratory and acute care product group offers respiratory humidifiers, single-use and reusable chambers and breathing circuits, infant resuscitators, infant warmers and accessories. The obstructive sleep arena product group offers continuous positive airway pressure (CPAP) devices, masks and humidifiers.

The Company operates in four geographical segments: New Zealand, North America, Europe and Asia- Pacific. The Company’s products and systems are sold in over 120 countries worldwide. Its products are sold to hospitals and healthcare facilities around the world through direct sales offices operations and a network of distributors that sell to hospitals, homecare providers and other manufacturers of medical devices.

Fisher & Paykel Healthcare arose from the separation of the major trading businesses of Fisher & Paykel Industries into Appliances and Healthcare in November 2001. In connection with the reorganisation, Fisher & Paykel Healthcare Corporation Limited listed on the Australian and New Zealand Stock Exchanges and NASDAQ. In February 2003 the NASDAQ listing was terminated.

Currently FPH manufacture, assemble and test its complete range of products, including many components, in its two facilities in New Zealand and Mexico. The Company employ more than 3,150 people around the world including more than 420 staff dedicated to research and development.

F&P Healthcare reported net profit after tax was NZ$113.2 million for the year ended 31 March 2015, an increase of 17% compared to the prior year’s NZ$97.1 million.

In constant currency, operating profit increased 57%. The increase in the full year net profit after tax reflects strong revenue growth and further gross margin expansion, through a combination of favourable product mix, lower manufacturing costs and logistics improvements.

The Group’s debt to debt plus equity ratio of 10.3% is now within the previously established target range of 5% to 15%. The company’s directors have reviewed the company’s gearing and dividend policies and have established a revised target debt to debt plus equity ratio in the range of +5% to -5% to support business growth and operation of its foreign currency hedging policy. The company now expects that a dividend pay-out ratio of approximately 70% of net profit after tax will be appropriate to achieve and maintain that target gearing.

The directors have approved an increased final dividend of NZD 8.0 cents per ordinary share carrying a full imputation credit of 3.11 cents per share. Eligible non-resident shareholders will receive a supplementary dividend of NZD 1.4118 cents per share. The total dividend payment for the year at 13.8 cps equates to 68% of net profit after tax. The directors continued the Dividend Reinvestment Plan (DRP) without discount.

To Read full 23 pages Research report on F&P Healthcare visit IRG store shop.sharechat.co.nz

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