Photo: Ann Orman/Supplied
Respiratory equipment manufacturer Fisher & Paykel Healthcare's full year profit fell 47 percent, despite a revenue gain of 10 percent.
The company said the bottomline was adversely affected by three abnormal one-time items, with underlying profit up 6 percent when those items were excluded.
Key numbers for the year ended March compared with a year ago:
- Net profit $132.6m vs $250.3m
- Revenue $1.74b vs $1.58b
- Underlying profit $264.4m vs $250.3m
- Gross margin 59.9% vs 59.4%
- FY dividend 41.5 cents per share vs 40.5cps
"After several years of changing demand patterns, we are pleased to have returned to a trajectory of growth," managing director Lewis Gradon said.
"We have an impressive portfolio of products, strong relationships with our customers and the right infrastructure to meet our future needs."
The hospital product group, which included humidification products used in respiratory, acute and surgical care, saw a 6 percent gain in revenue to $1.1b.
The homecare product group, which included products used in the treatment of obstructive sleep apnea and respiratory support in the home, saw revenue growth of 18 percent to $652.3m.
Gradon said the outlook for the 2025 financial year, assumed no significant respiratory disease events, and was expected to see revenue in a range of $1.9b to $2.0b and bottomline net profit in a range of $310m to $360m, with a further improvement in gross margin.
Net profit was hit by three abnormal items, including the a drop in the valuation of at Karaka, New Zealand, which was negatively impacted by its current zoning status, the higher interest-rate environment, and general development land market conditions, accounting for an adjustment of $98m.
Net profit was further marked down by a change in New Zealand legislation removing tax deductions for the depreciation of buildings, resulting in a $19.3m tax adjustment.
An underestimate of costs associated with a limited recall of Airvo 2 and myAirvo 2 devices manufactured before 14 August 2017 resulted in a $20m cost, rather than the earlier estimate of $12m.