Fisher & Paykel Healthcare Corporation Limited today provided earnings guidance for the first half of the 2024 financial year, which ends 30 September 2023.
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 $790 million, and net profit after tax within the range of approximately $95 million to $105 million.
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 $1.70 billion, which the company provided in May.
Managing Director and Chief Executive Officer Lewis Gradon said, “For the first four months of the 2024 financial year, revenue from OSA 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,” continued Mr Gradon.
Milestones and achievements
Over the past 12 months, Fisher & Paykel Healthcare has reached some significant milestones supporting its long-term growth strategy. The company acquired land in Karaka for a second New Zealand campus, opened a third building in Tijuana, Mexico, and began fitting out a new manufacturing facility in China.
Fisher & Paykel Healthcare increased the size of its sales force, brought forward future research and development projects, and launched its Evora Full face mask for obstructive sleep apnea. It recently received FDA clearance for the F&P 950 humidification system and Airvo 3 high flow therapy device, expanding the market for those products into the United States.
“We have some great long-term opportunities ahead of us in hospital and home respiratory therapies, surgical and anesthesia applications, and treatments for obstructive sleep apnea. In recent years our products have been used to treat approximately 20 million patients per year, and the market for our products is more than 10 times that. We are confident that we can facilitate changes in clinical practice and reach those underpenetrated markets,” concluded Mr Gradon.
Annual Shareholders’ Meeting 2023
Fisher & Paykel Healthcare has provided speeches and slide presentations for the 2023 Annual Shareholders’ Meeting to the NZX and ASX today. The meeting will begin today at 2:00pm NZST, 12:00pm AEST (10:00pm USEDT) and will be broadcast simultaneously over the internet. To participate go to: http://www.virtualmeeting.co.nz/fph23.
*Referenced 31 July 2023 exchange rates of NZD:USD 0.62, NZD:EUR 0.56, NZD:MXN 10.35.
About Fisher & Paykel Healthcare
Fisher & Paykel Healthcare is a leading designer, manufacturer and marketer of products and systems for use in acute and chronic respiratory care, surgery and the treatment of obstructive sleep apnea. The company’s products are sold in more than 120 countries worldwide. For more information about the company, visit our website www.fphcare.com.
Media & Investor Contacts:
Head of Capital Markets & Investor Relations
+64 (0) 27 807 8073
Senior Communications and Investor Relations Manager
+64 (0) 22 511 4050
Authorised by Fisher & Paykel Healthcare Corporation Limited’s Board of Directors.
Fisher & Paykel Healthcare provides guidance for first half of FY24
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