Net profit rose 17% to $113.2 million in the year ended March 31.
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See also: Fisher & Paykel Healthcare shares jump 6% on record results
Fisher & Paykel Healthcare [NZX: FPH], the medical device maker, beat its forecast for annual profit and said earnings would rise further in the coming year.
Net profit rose 17% to $113.2 million in the year ended March 31, above its forecast range of $105-110 million, the Auckland-based company said in a statement. Revenue increased 8% to $672.3 million, ahead of the forecast $660 million.
Fisher & Paykel today forecast profit in the coming year of $125-130 million, on revenue of $750 million.
The company, which competes with Resmed and Respironics, boosted sales of respiratory and acute care products by 9.3% to $368.2 million, and sales of obstructive sleep apnoea devices by 7.8% to $291.1 million. It expanded its gross margin to 61.1%, from 58.6% the year earlier.
"We have exceeded our earnings guidance provided in November as a result of robust revenue growth in both major product groups, a continuation of gross margin expansion and through operating leverage, and despite a $26.7 million reduction in foreign exchange hedging gains compared to the prior year," chief executive Michael Daniell said.
Fisher & Paykel exports the vast majority of its products. Excluding the impacts of currency movements, revenue rose 13% and operating profit jumped 57%, it said.
The company will pay a dividend of 8c per share on July 10, up from 7cps the year earlier. It expects to pay out about 70% of net profit after tax to maintain its target gearing ratio, compared with a previous aim of more than 60%.
Fisher & Paykel, which gets 43% of its sales from the US, will assume direct responsibility for its respiratory care products in that market from July 19 after previous distributor CareFusion was taken over by Becton Dickinson. The company has expanded its distribution centre in the US and is doubling the size of its US hospital sales and support team.
An inventory selldown by the current distributor would have a temporary effect on respiratory and acute care revenue growth in the first half of this year, Mr Daniell said.
Still, the increased focus that will be brought to selling the company's products is expected to support an increase in revenue growth over time, he said.
In the past year, Fisher & Paykel increased research and development spending by 20% to $65 million. Its updated AIRVO flow generator systems with new breathing tube technology, a new nasal cannula range and portable power supply is the first of a number of new products to be launched over the next 18 months, Daniell said.
Fisher & Paykel Healthcare shares jumped 5.6 percent to $6.65.
(BusinessDesk)
