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- Fisher & Paykel Healthcare (FPH) forecasts weaker revenue and profits for the half-year to the end of September compared to the same time period last year
- The company expects to post operating revenue of about $670 million, while net profit after tax is anticipated to land between $85 and $95 million
- For reference, the company posted revenue of $900 million over the first half of its 2022 financial year and a net profit after tax of $222 million
- FPH says it expects revenue to pick up in the second half of FY23 as it launches new products and the demand for hospitalisation consumables lifts in line with seasonal patterns
- Shares in Fisher and Paykel are trading 4.65 per cent lower today at $18.25 at 11:39 am AEST
Fisher & Paykel Healthcare (FPH) has forecast weaker revenue and profits for the half-year to the end of September compared to the same time period last year.
The company said it expected to post operating revenue of about $670 million for the half-year, while net profit after tax is anticipated to land between $85 and $95 million.
For reference, the company posted revenue of $900 million over the first half of its 2022 financial year and a net profit after tax of $222 million.
Fisher & Paykel said its gross margins were expected to be about 60 per cent, which was below the company’s long term-target of 65 per cent.
The company said this was a result of elevated freight and COVID-19 costs, as well as some manufacturing inefficiencies.
Managing Director and CEO Lewis Gradon said customers purchased a considerable amount of hospital consumables in preparation for each wave of COVID-19, resulting in the company “dramatically” increasing production over the past two years.
“We believe customer stock levels have been elevated during our first half, which impacts our short-term sales,” Mr Gradon said.
“This does not change the fundamentals of our business or our strategy.”
The company said though it had reduced its manufacturing costs, manufacturing inefficiencies were likely to persist as demand stabilised and inventory levels reduced to their targets.
It added that it would continue to invest in research and development.
“To deliver on our aspiration of doubling our constant currency revenue every five to six years, we believe it is essential that we continue to grow our investment in our R&D activities,” Mr Gradon said.
“This includes funding clinical trials for home respiratory support products and advancing the development of new surgical technologies.”
FPH said it expected revenue to pick up in the second half of FY23 as it launched new products and the demand for hospitalisation consumables lifted in line with seasonal patterns.
The company is targeting operating expense growth of about 10 per cent per year.
Shares in Fisher and Paykel were trading 4.65 per cent lower today at $18.25 at 11:39 am AEST.
