Fisher & Paykel Healthcare Corporation Limited (NZSX:FPH, ASX:FPH) announced today that continuing strong volume growth in its obstructive sleep apnea (OSA), respiratory and acute care products contributed to operating revenue of NZ$172.5 million or US$127.7 million for six months ended 30 September 2007.
Increasing demand, particularly for its masks, respiratory consumables and neonatal devices, along with expanding activities in international markets all contributed to growth.
In US dollar terms OSA product group operating revenue increased by 21% and respiratory and acute care product group operating revenue increased by 15% compared to the same period last year.
“We continued to gain share within the rapidly growing OSA treatment market, with 25% growth, in US dollar terms, for total mask and flow generator operating revenue.
Demand for our neonatal care product range, which includes infant warmers, bubble CPAP systems and resuscitators, was particularly strong. This, coupled with ongoing growth in respiratory humidification consumables generated robust growth in our respiratory and acute care product group”, commented the company’s CEO, Mr Michael Daniell.
“We continue to make encouraging progress in developing opportunities for our technologies to assist in the care of patients beyond our traditional intensive care market. These include patients requiring non-invasive ventilation, oxygen therapy, humidity therapy and laparoscopic surgery.
“Our United States distribution partner has secured a significant hospital group purchasing contract for respiratory humidifier systems which we expect will contribute to accelerated growth in the second half”, concluded Mr Daniell.
The company’s products are sold in over 110 countries worldwide. Over the year, the company derived its trading revenue in a variety of currencies with US dollars contributing 59%, Euros 23%, Australian dollars 8%, UK pounds 5%, and NZ dollars 2%. The average NZD:USD exchange rate increased by 17% to 0.74 compared with 0.63 for the same period last year.
Operating profit for the six months was NZ$31.2 million compared to NZ$41.1 million for the prior comparable period and profit after tax was NZ$18.7 million compared to NZ$26.3 million. The reductions reflect the effect of the much stronger NZ dollar and increased R&D, sales and operations expenses.
The company’s directors have approved an interim dividend for the financial year ended 31 March 2008 of 5.4 NZ cents per ordinary share (2007: 5.4 cents), carrying full imputation credit. Non- resident shareholders will receive a supplementary dividend of 0.953 NZ cents per share. The final dividend will be paid on 14 December 2007, with a record date of 5 December, and an ex-dividend date of 29 November for the ASX and 6 December for the NZSX.
Research & Development, SG&A
Research and development expenses increased by 18% to NZ$11.5 million or 6.6% of operating revenue for the six months ended 30 September 2007. The company continued to expand its research and development teams and current new product projects include flow generators, masks and additional breathing system consumables.
Selling, general and administrative (SG&A) expenses grew 5% to NZ$49.8 million, or 15% in constant currency terms, as the company continued to expand its operations and its sales teams in North America, Europe, Asia/Pacific and South America.
For the 2008 financial year the company expects a continuation of strong underlying revenue growth across its product range. The company expects that trading revenue will grow to approximately US$275 million or approximately NZ$365 million, generating an operating profit of approximately NZ$68 million if the NZD:USD exchange rate averages 0.75 for the remainder of the financial year.
Financial Statements and Commentary
Attached to this news release are condensed financial statements and commentary in both NZ
dollars and US dollars.
The company’s financial statements for the six months ended 30 September 2007 and the comparative financial information for the six months ended 30 September 2006 have been prepared under the New Zealand equivalent to International Financial Reporting Standards (NZ IFRS). The notes to the financial statements include reconciliations and discussion of any significant differences between previous New Zealand GAAP and NZ IFRS.
Full Year Results Conference Call
Fisher & Paykel Healthcare will host a conference call to review the results and to discuss the outlook for the remainder of the 2008 financial year. The conference call is scheduled to begin at 10:00am NZDT, 8:00am AEDT (4:00pm USEST, Wednesday 21 November) and will be broadcast simultaneously over the Internet.
To listen to the webcast access the company’s website at www.fphcare.com. Please allow extra time prior to the webcast to visit the site and download the streaming media software required. An online archive of the event will be available approximately two hours after the webcast and will remain onsite for two weeks.
Intending participants may register for the conference call prior to the event, using this link: http://www.fphcare.com/investor/conference/ . Once registered, participants will be assigned a conference passcode and user PIN. Registered participants can dial in to one of the numbers below and use their codes for instant access to the conference. Alternatively, dial in to one of the numbers below a few minutes prior to the scheduled call time and identify yourself to the operator:
New Zealand Toll Free 0800 449 118
Australia Toll Free 1800 555 619
USA Toll Free 1866 369 4113
International +61 3 9221 4420
An audio replay of the conference call will be available approximately 60 minutes after the call and will be accessible for two weeks at +61 3 9221 4752, access code 027616.
About Fisher & Paykel Healthcare
Fisher & Paykel Healthcare is a leading designer, manufacturer and marketer of heated humidification products and systems for use in respiratory care and the treatment of obstructive sleep apnea. It also offers an innovative range of neonatal care products. The company’s products are sold in over 110 countries worldwide. For more information about the company visit www.fphcare.com
Contact: Michael Daniell MD/CEO on +64 9 574 0161 or Tony Barclay CFO on +64 9 574 0119.