F&P Healthcare posts 51pc rise in 9 month net profit

By NZPA

Friday 14th February 2003

Fisher & Paykel Healthcare today posted a 51 percent rise to $60 million in its net profit in the nine months to December 31.

It recorded a record third quarter profit of $26.2 million.

Total operating revenue for the nine months fell 0.8 percent to $156.1 million. The pre-tax operating surpluse before unusuals rose 53 percent to $91.2 million.

It provided for tax of $31.2 million, up 56 percent.

Earnings per share rose to 59 cents from 35.

The company said the third quarter was driven by strong product growth particularly for the treatment of obstructive sleep apnea (OSA), and $13.9 million in currency gains. The third quarter result compares with a $14.1 million profit in the comparable three month period.

Revenue for the three months grew 17 percent in US dollar terms, compared with the prior comparable quarter in 2001.

Forecasts for its fourth quarter are for continued strong US dollar revenue growth.

OSA revenue increased by 36 percent, in US dollar terms. This contributed to 20 percent revenue growth overall in the company's core product range.

In US dollar terms, respiratory humidification revenue increased by 9 percent and neonatal and patient warming revenue increased by 17 percent over the prior comparable quarter.

"The performance of the OSA product group was again very encouraging with strong growth achieved in both the US and international markets by integrated flow generator-humidifiers, CPAP (sleep disorder product) humidifiers and masks compared with the same quarter a year ago," managing director Michael Daniell said.

In the respiratory humidification product group, the company's adult and neonatal breathing circuits achieved strong growth and continued to gain market share.

"We're also pleased with the initial acceptance of our infant CPAP system which is used for breathing support of new-born babies and which we believe can provide a significant improvement in neonatal respiratory care," Mr Daniell said.

The company has in place a mix of foreign exchange contracts and call options for up to four years forward, with a face value of about $NZ460 million.

The hedging instruments are at an average exchange rate of about US45.3c and 0.465 euros to the New Zealand dollar compared with the current rate of US55.3c and 0.51 euros.

As previously announced, along with its decision to de-list from Nasdaq, the company has changed its treatment of foreign exchange instruments.

Mr Daniell said that for the fourth quarter the company expects to see a continuation of strong revenue growth in core products and "we are now on target to achieve total revenue for the year of approximately $US101 million ($NZ186 million) against $US89 million for the prior year".

Healthcare shares rose 5 cents to $10.00 when the market opened. The shares have traded between $7.80 and $14.41 in the last 12 months.

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