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Fisher & Paykel continues to excel with post-pandemic strategies

NZ-based Fisher & Paykel Healthcare Corporation looks on track to make guidance for the six months to September and the full financial year ending March 2024 after delivering an update to the company’s annual meeting yesterday (Tuesday).

And in doing so first half earnings could see a small rise on a year who when net profit slumped 57% to $NZ95.9 million – the fall was due to a slowing in the supply at all costs demand driven by the pandemic.

The company told exchanges on both sides of the Tasman on Tuesday that “At 31 July exchange rates, and assuming a continuation of trading conditions in the first four months, the company expects operating revenue for the first half to be approximately $NZ790 million, and net profit after tax within the range of approximately $NZ95 million to $NZ105 million.”

If that happens earnings could be up around 4% to 5% at the midpoint.

“This would represent approximately 14% growth in revenue on the first half of the previous financial year. Trading to date indicates no material change to the full year revenue guidance of approximately $NZ1.70 billion, which the company provided in May,” the company said.

CEO Lewis Gradon said, “For the first four months of the 2024 financial year, revenue from masks was stronger, and revenue from hospital hardware was marginally lower, than assumed.

“Constant currency group revenue and operating expense results to date remain consistent with the full year guidance we provided in May, with gross margin improvement approaching 200 basis points in constant currency for the full year.

“As we said in May, this year we have returned to executing on continuous improvement initiatives across the business. During the pandemic we had a responsibility to get as much product as possible into the hands of our customers.

“Now, we have moved away from that supply-at-all-costs mentality, and we are once again focused on operational efficiency. We expect to see positive financial impacts building through the year,” Mr Gradon added.


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