27 Nov 2019

Fisher & Paykel Healthcare's first half profit up nearly a quarter

11:40 am on 27 November 2019

Fisher & Paykel Healthcare's first half profit is up nearly a quarter, driven by strong demand for its hospital products.

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Photo: Supplied / Fisher & Paykel Healthcare

The healthcare appliance manufacturer's net profit for the six months ended 30 September rose 24 percent to $121.2 million, while total revenue up 12 percent to $570.9m.

Revenue in the company's hospital division, which included humidification products used in respiratory, acute and surgical care, rose 19 percent to a record $353.6m.

"We saw strong demand across our hospital product portfolio, but in particular, for our Optiflow and Airvo systems, which continued to benefit from the growing body of clinical research in the use of nasal high flow therapy," managing director Lewis Gradon said.

The homecare group, which included products used in the treatment of obstructive sleep apnea (OSA) and respiratory support in the home, had relatively flat revenue growth of 2 percent to $214.7m.

"Revenue from our new F&P Vitera full face mask in Australasia, Canada and Europe has partially offset declines in sales of some of our legacy OSA masks, resulting in homecare revenue in line with expectations for the first half," Mr Gradon said.

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Photo: Supplied / Fisher & Paykel Healthcare

"Vitera was launched in the United States in October, and we are encouraged by the early response from customers."

The homecare division sales were expected to grow at the same rate, with strong growth in respiratory support products, offset by ongoing pressure for OSA legacy masks.

However, hospital revenue growth was expected to continue at pace over the second half, assuming a moderate flu season for the balance of the year.

"At current exchange rates we continue to expect full year operating revenue for the 2020 financial year to be approximately $1.19 billion and net profit after tax to be in the range of approximately $255m to $265m," he said.

The company's interim dividend of 12 cents per share was up 23 percent on the year earlier.