29 May 2015

Record profit for F&P Healthcare

1:49 pm on 29 May 2015

Fisher and Paykel Healthcare has reported a record high annual profit, as it benefited from more demand for its respiratory and sleep apnea products and lower manufacturing costs.

The medical device company made a better-than-expected $113.2 million in the year to the end of March, an increase of 17 percent compared with the previous year.

Mike Daniell

Mike Daniell Photo: Supplied

That is above guidance it gave last November, when it forecast a profit of between $105 million and $110 million.

Revenue also hit a record high, rising 8 percent to $672 million, while its operating profit rose by 19 percent to $170 million.

The chief executive of Fisher and Paykel Healthcare, Mike Daniell, said the stronger result was due to its gross margin rising from 58.6 percent to 61.1 percent.

He said the company would take control of distributing its respiratory products in the United States from July, and would double its hospital sales and support team at a cost of up to $15 million.

Mr Daniell said that would boost revenue growth over time.

Looking ahead, the company is expecting profit to rise to between $125 and $130 million for the current financial year.

At midday, the company's share price had jumped more than 6 percent, up 34 cents to $6.64.

The company raised its dividend by 14 percent to 8 cents a share, and it expected to lift its payout form 60 to 70 percent of net profit.

The company also spent more on research and development, with expenses growing 20 percent to $65 million.