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Fisher & Paykel Healthcare - Source: ONE News -
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Fisher & Paykel Healthcare has reported a 31% rise in half-year net profit to $37 million.
The record profit was a result of strong revenue growth in the obstructive sleep apnoea (OSA) product group, continuing strong demand for respiratory products and favourable foreign exchange hedging results, the company says.
Operating revenue for the six months to the end of September increased 18%, compared to a year earlier, to $251.4 million.
An interim dividend of 5.4 cents per share is to be paid.
The company says it expects continuing growth in demand for its products for the rest of the 2010 financial year.
It estimated that at an average exchange rate of US74 cents to the New Zealand dollar, it would achieve operating revenue of about $500 million and profit after tax of about $65 million to $70 million.
Chief executive Michael Daniell says underlying growth was expected to increase substantially in the second half, with accelerating growth in respiratory product demand.
In the next few months, the company planned to begin introduction of its new flow generator into the OSA market.
Recurring revenue, from sales of consumables and accessories, was about 75% of total operating revenue, Fisher & Paykel Healthcare says.
OSA product group operating revenue rose 31% to $118.8 million, reflecting strong demand for the company's new premium flow generators and masks.
Respiratory and acute care product group operating revenue rose 8% to $117.4 million.
Constant currency operating revenue growth for OSA masks and flow generators was 20%, as Healthcare gained market share with new premium products, Daniell says.
Allowing for the exceptional first half last year, it was estimated that underlying constant currency revenue growth for the respiratory and acute care product group was about 14%.
"We continued to make very encouraging progress in developing new clinical applications for our technologies beyond our traditional invasive ventilation and OSA markets," Daniell says.
"An increasing proportion of our respiratory and acute care revenue is derived from devices used to assist in the treatment of patients requiring non-invasive ventilation, oxygen therapy, humidity therapy and laparoscopic surgery."
Research and development expenses were up 23% to $16.3 million, representing 6.5% of operating revenue. New product projects included flow generators, masks and additional respiratory care consumables.
During September and October the company monetised $US62 million ($NZ84.5 million) of forward exchange contracts with maturity dates in the 2012 and 2013 financial years with a cash benefit of $30 million being realised and applied to reduce bank debt.
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TVNZ 7 Monday 23 November at 9.10pm
