F&P Healthcare posts record FY sales, profit growth stalls   25 May 2012

Hannah Lynch

Fisher & Paykel Healthcare, which makes respirators and sleep apnea products, reported record annual sales while profit growth, excluding a year-earlier tax charge, stalled as margins contracted.

Profit was $64.1 million in the 12 months ended March 31, from about $52.5 million a year earlier, when it took a one-time tax charge of $11.5 million. Excluding the charge, earnings were little changed. Sales climbed 2 percent to a record of $516.7 million.

Shares of F&P Healthcare dropped 4.5 percent to $2.32 after the results, which showed its gross margin shrank to 53.2 percent from 54.9 percent while its operating margin slipped back to 18 percent from 19.3 percent. Cost of sales in the year rose 6 percent, three times greater than sales growth.

The company gets 52 percent of sales in US dollars and the strength of the kiwi dollar sapped the value of overseas revenue when it was brought home.

Respiratory and acute care product sales jumped 18 percent to US$218.6 million, though in kiwi dollar terms the gain was 6.9 percent to $270.8 million. For OSA products, US dollar sales climbed 6.6 percent to US$184.9 million, while in local currency terms they fell 3.2 percent to $229 million. Total operating revenue in US dollars rose 12.4 percent.

Chief executive Michael Daniell forecast 2013 operating revenue would rise to a range of $540 million to $560 million, while profit would be $62 million to $70 million. The forecasts assume the New Zealand dollar trades in a range of 75 US cents to 80 cents for the remainder of the current year.

The company will pay a final dividend of 7 cents a share, unchanged from a year earlier. It will be paid on July 6.

“We expect our underlying revenue growth to begin to accelerate this year, particularly in the second half, as a number of new products, including new OSA masks, are introduced around the world," Daniell said. "We also anticipate a continuation of strong growth in demand for our products, which are used in a broad range of respiratory and surgical applications."

The company said it expects to improve its constant currency operating margin, with faster growth in higher margin products and cost reductions.

F&P Appliances invested $68 million in manufacturing, product tooling and replacement equipment in the latest year. That was predominately used to increase the quality of its Mexico manufacturing plant to cope with a ramp up in manufacturing. In Auckland, the company added a third building to its site at a cost of $47.4 million.

As at March 31, the company had a mix of foreign exchange contracts and collar options valued at about $450 million. It closed out foreign exchange contracts in the 2010 and 2012 financial years, which will contribute $17.8 million in the 2013 financial year and $21.3 million the year after in operating profit.

(BusinessDesk)

 

Add a comment

Bookmark and Share

News

Government Inquiry report released

25 Nov 2014 Politics
Prime Minister John Key has today released the findings of the Government Inquiry into allegations regarding Judith Collins and a ... more

PM welcomes Inspector-General’s report

25 Nov 2014 News
Prime Minister John Key today welcomed the report of Cheryl Gwyn, Inspector-General of Intelligence and Security, into issues ... more

Business

Extreme commute: From New Zealand to rural Iceland

18 Nov 2014 Business News
Every year, several dozen butchers make an epic commute - from provincial New Zealand to rural Iceland - for just two months' work.... more

A2 Milk to seek ASX listing, push into US market

18 Nov 2014 Business News
Article - BusinessDesk   A2 Milk to seek ASX listing, push into US market, renew sales into China By Fiona Rotherham Nov. 18 ... more

Living

Hawaiian Voyagers Return to Reaffirm their Link with Maori

17 Nov 2014 Lifestyle
WAITANGI, New Zealand – When intrepid Hokulea crewmembers first sailed to Aotearoa (New Zealand) 29 years ago using the ... more

Sir Edmund Hillary Scholarship team in Round the Bridges

14 Nov 2014 Lifestyle
A University of Waikato Sir Edmund Hillary Scholarship team is set to compete in this Sunday’s Round the Bridges. The team of... more

Property

More homes coming on board for Christchurch tenants

18 Nov 2014 Property
Social Housing Minister Paula Bennett is impressed with Housing New Zealand’s progress in building, redeveloping and repairing... more

New initiatives to improve tenancy services

17 Nov 2014 Property
Changes to the delivery of key tenancy services are set to streamline and speed up processes for landlords and tenants, Building and... more

Migration

NZ net migration rises to record in Oct as more kiwis return

24 Nov 2014 Migration By Suze Metherell
NZ net migration rises to fresh record in Oct as more kiwis return, Indian students arrive Nov. 24 (BusinessDesk) - New Zealand's... more

Australians & New Zealanders should be free to live & work in UK

3 Nov 2014 Migration
Australians and New Zealanders should be granted special status to live and work in the United Kingdom without restriction, a new... more

Travel

NZ guest nights jump to a record in September on rise in international travelers

12 Nov 2014 Travel & Tourism By Tina Morrison
Nov. 12 (BusinessDesk) - New Zealand guest nights rose 1.1 percent to a record for a September month, driven by a rebound in ... more

Travel to NZ made easier for Indian business visitors

7 Nov 2014 Travel & Tourism
Associate Tourism Minister Paula Bennett and Immigration Minister Michael Woodhouse say Indian nationals travelling to New Zealand... more

Sport

Lydia Ko gets record LPGA haul - and a US$1.5m payday!

24 Nov 2014 Golf
NAPLES, Fla. -- New Zealand teenager Lydia Ko was an instant millionaire even before she went into a three-way playoff Sunday in the... more

Young Netball Central Zone Shooters to Learn from the Best

24 Nov 2014 Netball
The most promising young shooters from across the Netball Central Zone are being given the opportunity to learn from the very best... more

Columns

Gordon Campbell on Rick Ellis as Te Papa’s new CEO

24 Nov 2014 Opinion By Gordon Campbell
The recent appointment of former TVNZ boss Rick Ellis to head Te Papa has copped a fair bit of criticism... more

Gordon Campbell on the SAS role against Islamic State, and Podemos

20 Nov 2014 Opinion By Gordon Campbell
  Could this news report serve to explain – in a nutshell – why Prime Minister John Key has not ruled out the SAS... more

Kiwi Success

Dame Anne Salmond appointed Patron of Sail Training Trust

25 Nov 2014 Appointments
R.Tucker Thompson Sail Training Trust Dame Anne Salmond appointed Patron of Northland-based Sail Training Trust   Former New... more

Industry expert takes the helm at VMob UK/Europe

25 Nov 2014 Appointments
VMob Group Limited Global expansion continues for internationally-awarded New Zealand mobile marketing company VMob (NZAX: VML) as... more

Recruitment

Smiths City starts CEO search after Hellings signals exit

12 Nov 2014 Recruitment
Article - BusinessDesk   Smiths City starts search for new CEO after Hellings signals exit By Paul McBeth Nov. 12 (BusinessDesk)... more

More than 600 take up 3K to Christchurch jobs

28 Oct 2014 Recruitment
Social Development Minister Anne Tolley says the Government’s 3K to Christchurch scheme is a winner with 633 unemployed people... more