F&P Healthcare posts record FY sales, profit growth stalls 25 May 2012
- MARKET CLOSE:NZ shares rise paced by Pacific Edge; Orion up Business
- Doubling of flights between NZ and China News
- NZ dollar to stay under pressure until December MPS Business
- UPDATE: MFAT chief John Allen leaves for NZ Racing Board Business
- CORRECT: NZTE's annual report shows big company woes weigh Business
- CORRECT: Retail electricity margins unsustainably high Business
- Tourism Holdings lifts annual profit forecast, shares rise Business
- MRP rejects carbon farmer's carbon unit top-up claim Business
- Smartpay 1H profit rises 70% on currency benefit, epay Business
- Retail electricity margins unsustainably high, broker says Business
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.
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
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
17 Nov 2014 Lifestyle
WAITANGI, New Zealand – When intrepid Hokulea crewmembers first sailed to Aotearoa (New Zealand) 29 years ago using the ... more
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
18 Nov 2014 Property
Social Housing Minister Paula Bennett is impressed with Housing New Zealand’s progress in building, redeveloping and repairing... more
24 Nov 2014 Migration
NZ net migration rises to fresh record in Oct as more kiwis return, Indian students arrive Nov. 24 (BusinessDesk) - New Zealand's... more
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
12 Nov 2014 Travel & Tourism
Nov. 12 (BusinessDesk) - New Zealand guest nights rose 1.1 percent to a record for a September month, driven by a rebound in ... more
7 Nov 2014 Travel & Tourism
Associate Tourism Minister Paula Bennett and Immigration Minister Michael Woodhouse say Indian nationals travelling to New Zealand... more
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
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
24 Nov 2014 Opinion
The recent appointment of former TVNZ boss Rick Ellis to head Te Papa has copped a fair bit of criticism... more
20 Nov 2014 Opinion
Could this news report serve to explain – in a nutshell – why Prime Minister John Key has not ruled out the SAS... more
25 Nov 2014 Appointments
R.Tucker Thompson Sail Training Trust Dame Anne Salmond appointed Patron of Northland-based Sail Training Trust Former New... more
12 Nov 2014 Recruitment
Article - BusinessDesk Smiths City starts search for new CEO after Hellings signals exit By Paul McBeth Nov. 12 (BusinessDesk)... more