29 Jun 2020

Fisher & Paykel Healthcare posts record profit amid rising demand for respiratory equipment

12:31 pm on 29 June 2020

Fisher & Paykel Healthcare has made a record profit with strong demand for products to treat Covid-19 patients.

Vitera device for sleep apnoea by Fisher and Paykel.

Photo: Supplied / Fisher and Paykel Healthcare

The healthcare appliance manufacturer's full-year net profit rose 37 percent to $287.3 million in the year ended in March.

Sales rose 18 percent to $1.26 billion.

Chief executive Lewis Gradon said there had been strong demand for its respiratory equipment from hospitals throughout the year, even before the pandemic reached New Zealand's shores.

"Beginning in January, the demand for our respiratory humidifiers accelerated in a way that has been unprecedented.

"With new processes, new procedures and new ways of working safely, we managed to double and in some instances triple output for some of our hospital hardware products over just a few months at the end of the year."

He said the demand has continued through the first quarter of this financial year, with a 300 percent increase in hardware sales to hospitals.

"We cannot predict the scope, duration or impact of Covid-19 and its effects on our operations and financial results," Gradon said.

"In the midst of this uncertainty, we will continue doing what we are known for - expanding our range of innovative products with patients at the centre."

He expected full-year sale would be about $1.48b, with a net profit in a range of $325m to $340m in the year ending 2021.

The company would pay a final dividend of 15.5 cents per share, which was a 15 percent increase on last year, and brought the total dividend payout for the year to 27.5 cents per share - an increase of 18 percent on last year.

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