Fisher & Paykel Healthcare Corporation Limited (NZSX:FPH, ASX:FPH) today reported record trading revenue of NZ$173.2 million for the six months ended 30 September 2006, up 28% against the prior comparable period.
Operating profit was NZ$46.1 million compared to NZ$47.4 million for the first half last year. Net foreign exchange hedging gains contributed NZ$2.8 million to first half operating profit compared to NZ$22.6 million in the prior comparable period. Profit after tax for the six months was NZ$29.7 million.
Chief Executive Officer, Michael Daniell said that trading revenue growth was achieved through increased activities in international markets and continued strong sales growth in each of the company’s obstructive sleep apnea (OSA), respiratory humidification and neonatal product groups.
During the six months the company derived its trading revenue in a variety of currencies with US dollars contributing 62%, Euros 20%, Australian dollars 7%, UK pounds 6%, and NZ dollars 1%. After allowing for exchange rate movements and hedging gains the company estimates that trading revenue grew 22% in constant currency terms.
The company’s directors have approved an interim dividend for the financial year ending 31 March
2007 of NZD 5.4 cents per ordinary share (2006: 5.4 cents), carrying full imputation credit. Non- resident shareholders will receive a supplementary dividend of NZD 0.953 cents per share. The interim dividend will be paid on 1 December 2006, with a record date of 22 November, and an ex- dividend date of 16 November for the ASX and 23 November for the NZSX.
OSA product group trading revenue increased by 33%, respiratory humidification trading revenue increased by 24% and neonatal trading revenue increased by 29% compared with the same period last year.
“We are continuing to gain share within the rapidly growing OSA treatment market and are encouraged by the 28% constant currency growth we achieved for combined mask and flow generator revenue.
Constant currency trading revenue growth of 23% in our respiratory humidification product group was driven by strong demand for our humidifier controllers and continuing market share gains by adult and neonatal breathing circuits,” commented Mr Daniell.
Trading revenue growth in the neonatal product group was driven by increasing demand for the company’s neonatal breathing devices, which include infant oxygen therapy systems and infant resuscitators.
Research & Development, SG&A
Research and development expenses increased 13% to NZ$9.5 million, representing 5.5% of trading revenue for the six months ended 30 September 2006. The company continues to expand its research and development activities and current new product projects include additional breathing system consumables, flow generators and masks.
Selling, general and administrative expenses grew 20% to NZ$47.9 million as the company continued to expand its operations and its sales teams in North America, Europe and Asia.
“Our performance for the six months to 30 September 2006, coupled with a growing contribution from recently introduced new products gives us confidence that we will achieve stronger performance for the full year than indicated by our initial 2007 operating profit and exchange rate sensitivity guidance.
For the remainder of the financial year we expect a continuation of strong underlying revenue growth across our product groups and international markets. If average spot exchange rates are similar to those experienced in the first half, we expect to achieve an operating profit of approximately NZ$98 million for the full year.” said Mr Daniell.
Financial Statements and Commentary
Attached to this news release are condensed financial statements and commentary in both NZ
dollars and US dollars.
Half 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 2007 financial year. The conference call is scheduled to begin today at 10:00am NZDT, 8:00am AEDT (4:00pm USEST, Tuesday 31 October 2006) 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.
To participate in the conference call please 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 009 696
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 000897.
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.