Fisher & Paykel Healthcare chief executive Lewis Gradon. Photo: Supplied / Fisher & Paykel Healthcare
Respiratory equipment manufacturer Fisher & Paykel Healthcare's full-year net profit is down a third as demand for its hospital products eases.
Key numbers for the year ended March compared with a year ago:
- Net profit $250.3 million versus $376.9m, down 34 percent
- Revenue $1.58 billion versus $1.68b, down 6 percent
- Hospital revenue $1.02b versus $1.0b, down 15 percent
- Homecare revenue 553.8m versus $469.5, up 18 percent
- Gross margin 59.4 percent versus 65.6 percent, down 325 basis points
- Final dividend 23 cents a share versus 22cps up 2 percent ( full-year dividend up 3 percent to 40.5cps)
Chief executive Lewis Gradon said the company was returning to a normal state following the Covid-19 pandemic, which drove soaring demand for its products.
"We are coming out of three financial years that were impacted by the Covid-19 pandemic, and our people, suppliers and customers have worked tirelessly to meet global demand surges," Gradon said.
"The second-half result was encouraging as market conditions progressed towards more of a normal state and both our hospital and homecare product groups delivered good growth."
In the absence of any significant disease events, the company was forecasting revenue growth for the current 2024 financial year to about $1.7b, with similar rates of growth for hospital and homecare product sales.
"Prior to the pandemic, we had a track record of incremental improvements in gross margin," Gradon said.
"Now, as every team in our business turns back to efficiency gains, we are confident in our ability to return to our long-term target of 65 percent within three to four years."
Capital expenditure for the 2024 financial year was expected to be about $450m to support land and building programmes, with interest expenses to be about $16m.
Over the past year, the company bought 105 hectares of land in Karaka, Auckland to build a second New Zealand campus.
A 10 percent deposit of the $275m purchase price was paid in September 2022, with a subsequent payment of $189.5m on 11 May.
A further $43m will be paid in January 2026, with a final instalment of $15m to be paid in December 2026.
In the meantime, earthworks were continuing on the company's existing East Tāmaki campus to prepare for the construction of a fifth facility, which will complete the campus.