F&P Healthcare profit up 12pc to $61.4m

Fisher & Paykel Healthcare today reported a 12 per cent increase in March year net profit to a record $61.4 million and said it expects its revenue growth to continue at a similar rate in the current financial year.

The company said its operating profit for the period was up 14 per cent to $89.7m and revenue was up 12 per cent to $240.6m "achieved through ongoing growth in the company's expanding product range and its increasing activities in international markets".

The company earned about 61 per cent of its revenue in US dollars and in US dollar terms its total revenue rose by 23 per cent and operating profit increased by 25 per cent. Operating margin increased to 37.3 per cent from 36.8 per cent last year.

F&P Healthcare chief executive Michael Daniell said the company expected "a continuation of strong underlying revenue growth similar to the 2005 financial year," in the current period.

"We expect revenue for the current year to be in the range of US$190 to US$195 ($271 to $279m) and operating margin percentage to be in the mid thirties."

The company declared an increased final dividend 5.8c a share fully imputed, equivalent to 29c a share prior to its five for one share split in October last year. The company paid a final dividend of 28c per share last year. The final dividend will be paid on 17 June 2005, with a record date of 7 June.

The company's new obstructive sleep apnea (OSA), respiratory humidification and neonatal products helped the generate the company's revenue and earnings growth, Mr Daniell said in a statement to the NZSX.

The new products enable d the company to grow market share, "and we continue to invest in the research and development that will lead to further new products in the coming year".

Mr Daniell said the company was spending about $60m to effectively double the size of its Auckland site to accommodate additional manufacturing and research and development capacity. That was due to be completed in mid 2006.

F&P Healthcare shares leapt 8c on opening to $3.06, having traded between $2.43 and $3.38 over the past 12 months.

- NZPA