F&P Healthcare posts record FY sales, profit growth stalls 25 May 2012
- MARKET CLOSE: NZ shares rose on oil relief; Air NZ gains Business
- Finzsoft shareholder Rubik to consider takeover Business
- NZ dollar dips as GDP growth revised down, Fed eyes rates Business
- FMA warns of UK pension scheme transfer scare-mongering Business
- Callaghan, NSC funding knocked in science plan submissions Business
- Crown Asset Management discontinues South Canterbury claim Business
- Tourism Holdings lifts annual profit forecast to $17 million Business
- New labelling standard for infant formula News
- Spark's Lightbox, Coliseum in JV to gain foothold in market Business
- Finzsoft boss to make takeover bid with Silverlake Axis 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.
15 Dec 2014 News
New Zealanders caught up in the area where a hostage drama is unfolding in central Sydney have spoken about their experiences.
15 Dec 2014 News
CPIT Outstanding nursing student carries on family tradition When she had to choose between nursing and medicine, Hannah Farrow... more
15 Dec 2014 Business News
Article - BusinessDesk Port of Napier FY profit rises 14% to record as more cargo crosses wharves By Jonathan Underhill Dec.... more
15 Dec 2014 Business News
By Suze Metherell Dec. 15 (BusinessDesk) - New Zealand shares fell in a global sell-off, paced by Xero, Westpac Banking Corp and... more
15 Dec 2014 Press Release
“There’s nothing worse than the fear of the unknown. And the known wasn’t particularly good... more
15 Dec 2014 Lifestyle
After a four year hiatus, The Edge’s Jay-Jay, Mike and Dom have again released three original Christmas songs to raise money... more
15 Dec 2014 Property
By Paul McBeth Dec. 15 (BusinessDesk) - Median national housing rents rose at an annual pace of 5.3 percent in November, slowing... more
9 Dec 2014 Property
By Paul McBeth Dec. 9 (BusinessDesk) - Trade Me, the online auction site, has agreed to buy rental property website Viewing Tracker... more
28 Nov 2014 Migration
Immigration Minister Michael Woodhouse will travel to Paris tomorrow to represent the New Zealand Government at the Organisation for... more
9 Dec 2014 Travel & Tourism
Customs Minister Nicky Wagner today congratulated the Customs Service for their role in the interception of a shipment of liquid ... more
15 Dec 2014 Sport
Tough new anti-doping rules come into force on January 1, 2015 which will see athletes who use performance enhancing drugs face... more
12 Dec 2014 Column
Article - Gordon Campbell Gordon Campbell on income inequality, and yo ho ho Christmas songs by Gordon Campbell As 2014... more
9 Dec 2014 Column
Column - Gordon Campbell Gordon Campbell on the hurdles to any extradition treaty with China So China’s President Xi... more
8 Dec 2014 People
Wellington, December 8th – At only 15 years old, Auckland student Hunter Williams is the youngest winner of the Inspiring... more
5 Dec 2014 Recruitment
By Paul McBeth Dec. 5 (BusinessDesk) - The New Zealand dollar is heading for a 0.9 percent weekly decline against the greenback as... more