21 Feb 2020

Fisher & Paykel Healthcare profit forecast up amid coronavirus outbreak

12:41 pm on 21 February 2020

Healthcare appliance manufacturer Fisher & Paykel Healthcare has upped its profit forecasts for the third time this year, with increased sales off the back of the coronavirus.

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Fisher & Paykel Healthcare now expects a full year net profit of between $260 and $270 million. Photo: Supplied / Fisher & Paykel Healthcare

The company now expects a full year net profit of between $260 and $270 million, up 1.9 percent on its previous forecast.

Chief executive Lewis Gradon said the company had seen increased demand from China for medical devices.

"We've seen better-than-expected sales in our Homecare product group combined with continued strong growth in our Hospital product group. This includes an increase in demand from China related to the Covid-19 coronavirus outbreak."

He said staff had been working hard to meet the demand.

"Our people have been working long hours to ship products quickly, assemble them, and meet the need for training, particularly in Wuhan.

"Many of our suppliers have expedited the supply of raw materials to us as a manufacturer of essential medical devices, and we are deeply grateful for that."

He said, at this stage, the company did not expect any significant disruption to its supply chain.

Fisher & Paykel Healthcare does not have a manufacturing facility in China, however, some of its suppliers of raw materials are based in China.

"We will continue to assess this on an ongoing basis, particularly if the outbreak escalates or continues for a prolonged period," he said.

In August it upgraded its forecast on the back of a softer New Zealand dollar and in October it upgraded again after gaining the right to sell its new full face mask in the United States.

Last year it made $209.2 million.