Fisher & Paykel Healthcare Corporation Limited announced that it has upgraded its earnings guidance for the financial year ending 31 March 2020 at its Annual Shareholders’ Meeting today.
“We’ve had a good start to the year and are on track to deliver strong revenue and earnings growth in the 2020 financial year,” said Managing Director and CEO Lewis Gradon.
“During the first quarter, we have seen strong growth in our Hospital product group, which continues to be supported by uptake in both our Optiflow nasal high flow therapy and non-invasive ventilation products,” said Mr Gradon.
“Our New Zealand dollar results can be influenced by exchange rate movements, and our earnings guidance has benefited from a weakening of the New Zealand dollar.”
The full year guidance previously provided in May, based on a NZ:US exchange rate of 65 cents, was for operating revenue to be approximately $1.15 billion and net profit after tax to be approximately $240 million to $250 million.
Now, assuming a NZ:US exchange rate of approximately 64 cents for the balance of the year, the company expects full year operating revenue to be approximately $1.17 billion and net profit after tax to be approximately $245 million to $255 million.
At current exchange rates, the company expects operating revenue for the first half of the 2020 financial year, ending 30 September 2019, to be approximately NZ$560 million and net profit after tax to be approximately NZ$120 million.
“Over the past 50 years, we’ve become the world leader in respiratory humidification. Through strong technical and clinical expertise, we’ve grown into a trusted global brand, earning the respect of key opinion leaders in healthcare. We’ve built global distribution in hospital respiratory support and homecare, and we’re building global distribution in surgical applications.
“I want to assure you that we’re not resting on our laurels. We’re building on the expertise we’ve developed and the lessons we’ve learnt over the last 50 years to carry on improving outcomes for more and more patients over the next 50 years,” said Mr Gradon.
The company has provided the Chairman’s speech, CEO’s speech and slide presentation for the 2019 Annual Shareholders’ Meeting to the NZX and ASX today, and provided an update (below) on the company’s foreign exchange hedging position as at today’s date. The Annual Shareholders’ Meeting is scheduled to begin at 2:00pm NZST, 12:00pm AEST (10:00pm USEDT) and will be broadcast simultaneously over the internet. To view the webcast, go to: www.virtualmeeting.co.nz/fph19.
About Fisher & Paykel Healthcare
Fisher & Paykel Healthcare is a leading designer, manufacturer and marketer of products and systems for use in respiratory care, acute care, surgery and the treatment of obstructive sleep apnea. The company’s products are sold in over 120 countries worldwide. For more information about the company, visit our website www.fphcare.com.
Foreign Exchange Hedging Position
The hedging position for our main exposures, the US dollar and Euro, as at today’s date is:
||Year to 31 March
|USD % cover of expected exposure
|USD average rate of cover
|EUR % cover of expected exposure
|EUR average rate of cover
Note: Hedging cover percentages have been rounded to the nearest 5%