F&P Healthcare posts record FY sales, profit growth stalls 25 May 2012
- MARKET CLOSE: NZ shares extend gains; CEN, TPW rise Business
- NZ dollar holds gains as Chinese data beats estimates Business
- Power companies face ban on 'saving' departing customers Business
- Cavalier and NZ Wool Services to merge wool scouring units Business
- Hellaby expects to complete at least one acquisition in 2015 Business
- Airwork sees annual profit growth of 48% Business
- Fletcher Building ups earnings through trebling house builds Business
- Fletcher to triple pace of home building in NZ Business
- NZ, South Korea free-trade agreement looks imminent Business
- Fletcher Building sees FY earnings $650M-$690M on 2H rebound 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.
19 Oct 2014 Politics
New Zealand Labour Party Labour Names Review Team Labour’s New Zealand Council has appointed Bryan Gould as Convenor of its ... more
18 Oct 2014 News
The Nation Lisa Owen interviews RSA President BJ Clark and tech innovator Ian Taylor about changing the NZ flag Lisa Owen: Welcome... more
17 Oct 2014 Business News
Oct. 17 (BusinessDesk) - New Zealand needs to lift its retirement age and take advantage of an adaptable workforce before it gets... more
20 Oct 2014 ANZAC
On Thursday 16 October, the NZ-UK Link Foundation held their Inaugural Annual Lecture at the University of London’s Senate... more
16 Oct 2014 Food & Wine
New Zealand’s organic wine industry has scored a major export victory with the announcement that the European Commission... more
15 Oct 2014 Property
The Resource Management Act needs to explicitly recognise the importance of New Zealanders’ access to more affordable housing... more
30 Sep 2014 Migration
There are thousands of expats living in the UK who are aiming for permanent residency status and, eventually, a British passport. But... more
10 Oct 2014 Travel & Tourism
By Paul McBeth Oct. 10 (BusinessDesk) - New Zealand guest nights were largely flat in August from a month earlier as a gain... more
19 Oct 2014 Sport
New Master Woolhandler Joel Henare continued an unbeaten start to the new shearing sports season with a triumphant homecoming in ... more
16 Oct 2014 Opinion
Gordon Campbell on New Zealand getting involved (again) in other peoples wars Apparently, the Key government is still... more
15 Oct 2014 Opinion
The politicisation of (a) the public service and (b) the operations of the Official Information Act have been highlighted by the ... more
17 Oct 2014 Appointments
Institute Of Directors Local businessman Brian Corban was made a Distinguished Fellow of the Institute of Directors yesterday, in a... more
13 Oct 2014 Appointments
Article - BusinessDesk Kiwi Income Property reshuffles executive positions By Suze Metherell Oct. 13 (BusinessDesk) - Kiwi... more
9 Oct 2014 Recruitment
Te Runanga o Ngati Awa is widening its scope in the hunt for directors for the Whakatane based iwi authority’s commercial arm... more