Fisher & Paykel Healthcare Corporation Limited (NZSX:FPH, ASX:FPH) announced today that very strong growth in its respiratory and acute care product group contributed to profit after tax of NZ$28.3 million for the six months ended 30 September 2008, a 51% increase on the same period last year. Operating profit grew 48% to NZ$46.1 million.
Operating revenue for the six months ended 30 September increased 24% compared to the same period last year to NZ$213.3 million, and in US dollar terms, grew 25% to US$159.6 million.
Respiratory and acute care product group operating revenue increased by 36% in US dollar terms and OSA product group operating revenue increased by 14%, in US dollar terms, compared to the same period last year.
“Demand for our respiratory humidifier systems was exceptionally strong in the first half as we delivered substantial orders for hospital Group Purchasing Organisation (GPO) contracts in the United States and filled respiratory consumable backorders.
In the expanding OSA treatment market, we achieved an encouraging 15% growth, in US dollar terms, for total mask and flow generator operating revenue. Last month, we introduced into the United States our new premium CPAP range and two new masks, which we expect will contribute to growth in the second half”, commented Fisher & Paykel Healthcare’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”, concluded Mr Daniell.
The company’s directors have approved an interim dividend for the financial year ending 31 March
2009 of 5.4 NZ cents per ordinary share (2008: 5.4 cents), carrying full imputation credit. Non- resident shareholders will receive a supplementary dividend of 0.953 NZ cents per share. The interim dividend will be paid on 12 December 2008, with a record date of 3 December, and an ex- dividend date of 27 November for the ASX and 4 December for the NZSX.
Research & Development, SG&A
Research and development expenses increased by 16% over the prior comparable period to NZ$13.3 million, representing 6.2% of operating revenue. The company continued to expand its product and process research and development activities and current new product projects include flow generators, masks and additional respiratory care consumables.
Selling, general and administrative (SG&A) expenses grew 21% to NZ$60.2 million as the company continued to expand its operations and its sales teams in North America, Europe, Asia/Pacific and South America.
For the remainder of the 2009 financial year the company expects to continue to achieve strong revenue growth and estimates that at an average NZD:USD exchange rate of 0.55 it will achieve operating
revenue growth of about 25% to approximately NZ$450 million, operating profit of approximately
NZ$100 million and profit after tax of approximately NZ$60 million.
Financial Statements and Commentary
Attached to this news release are condensed unaudited NZ dollar financial statements and commentary. For convenience the income statement has been translated into US dollars.
The company’s unaudited financial statements for the six months ended 30 September 2008 and the comparative financial information for the six months ended 30 September 2007 have been prepared under the New Zealand equivalents to International Financial Reporting Standards (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 2009 financial year. The conference call is scheduled to begin today at 10:00am NZDT, 8:00am AEDT (4:00pm USEST) 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 555 616
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 006001.
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, acute care and the treatment of obstructive sleep apnea. 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.