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.



Add a comment

Bookmark and Share


PM welcomes closer partnership with ASEAN

22 Nov 2015 News
New Zealand Government Rt Hon John Key Prime Minister 22 November 2015   PM welcomes closer partnership with ASEAN Prime ... more

Submissions open for United Nations report

20 Nov 2015 News
Minister for Women Louise Upston welcomes public consultation on a draft report for the United Nations outlining New Zealand’s... more


Increased Canterbury quake costs pushed Tower into the red

20 Nov 2015 Business News By Paul McBeth
Nov. 20 (BusinessDesk) - Tower, the general insurer, says it will report an annual loss next week after raising its provisioning for... more

NZ inflation expectations drift further below 2% mid-point

17 Nov 2015 Business News
Article - BusinessDesk   NZ inflation expectations drift further below 2% mid-point Nov. 17 (BusinessDesk) - Longer term ... more


Awards recognise NZ recreation's top performers

20 Nov 2015 Lifestyle
New Zealand’s recreation industry recognised 10 inspiring individuals and organisations at the New Zealand Recreation ... more

Villa Maria Proves a Huge Hit

16 Nov 2015 Lifestyle
VILLA MARIA PROVES A HUGE HIT TO OPEN SOVEREIGN TRI SERIES The Sovereign Tri Series for 2015/16 is underway with today’s... more


Auckland house price growth slows in Oct as new rules bite

4 Nov 2015 Property By Tina Morrison
  Auckland house price growth moderates in October as new rules introduced Nov. 4 (BusinessDesk) - Auckland house price growth... more

Tenancy bond system moves online

1 Nov 2015 Property
New Zealand Government 1 November 2015 A new tenancy bond service goes online today as part of the Government’s programme of... more


New migrant service launched for New Zealand and Australia

12 Oct 2015 Migration
Those looking for a sense of security when immigrating to New Zealand or Australia, need look no futher than the first inusrance... more

NZ's annual net migration reaches record 60,300 in August

21 Sep 2015 Migration
  NZ's annual net migration reaches record 60,300 in August on Indian, Chinese students By Jonathan Underhill Sept. 21... more


Australia's cloud passports only "conceptual" for now: DIA

29 Oct 2015 Travel & Tourism By Fiona Rotherham
Internal Affairs says Australia's cloud passports only "conceptual" for now   Oct. 29 (BusinessDesk) - The Department of... more

Auckland Airport a 'conductor' for New Zealand tourism: CEO

22 Oct 2015 Travel & Tourism By Fiona Rotherham
  Auckland Airport a 'conductor' for New Zealand tourism, CEO Littlewood says Oct. 22 (BusinessDesk) - Auckland International... more


Richie McCaw retires from rugby

19 Nov 2015 Sport
New Zealand Rugby Union Richie McCaw retires from rugby Richie McCaw has today confirmed he is hanging up his boot... more

Burling and Tuke on top at the mid-way mark

19 Nov 2015 Sailing
Yachting New Zealand Burling and Tuke on top at the mid-way mark at 49er World Champs Peter Burling and Blair Tuke have taken the... more


Gordon Campbell on why IS’s weakness makes it more dangerous

20 Nov 2015 Opinion By Gordon Campbell
Gordon Campbell on why Islamic State’s growing weakness makes it more dangerous One of the great things about writing online... more

Gordon Campbell on Islam and the Paris attacks

17 Nov 2015 Opinion By Gordon Campbell
According to polls, a third of Republican voters in Iowa want Islam to be criminalized. Unfortunately, the c... more

Kiwi Success

Cavalier promotes CFO Paul Alston to top job

20 Nov 2015 Appointments
Article - BusinessDesk   Cavalier promotes CFO Paul Alston to top job By Paul McBeth Nov. 20 (BusinessDesk) - Cavalier Corp, the... more

Employment Court Judge appointed

20 Nov 2015 Appointments
New Zealand Government Hon Christopher FinlaysonAttorney-General 20 November 2015 Kerry Smith, barrister and solicitor of... more


UPDATE: Weaker employment adds to rate-cut case

4 Nov 2015 Recruitment By Johnathan Underhill
Article - BusinessDesk   UPDATE: NZ employment falls in third quarter, adding to case for further RBNZ rate cut (Recasts to... more

Unemployment rises 0.1 per cent

4 Nov 2015 Recruitment
The latest Household Labour Force Survey (HLFS) has reflected the softening of the economy in the first half of the year, with an... more