KEY POINTS:
Full year operating profit guidance issued by Fisher & Paykel Healthcare highlights the impact of the strong New Zealand dollar on the company's results.
The company said today that it expected its operating profit for the year to the end of March to be about $57 million.
At the time of its half year result announcement in November, Healthcare had indicated it expected the full year operating profit to be about $68m, provided the NZ dollar averaged US75c for the remainder of the financial year.
The company also disclosed a total operating profit sensitivity of about $2.5m over the 12 months, 1 percentage point change in the value of the NZ dollar.
Today the company said its change in guidance allowed for the effects of the appreciation of the NZ dollar since November, preliminary operating revenue and inventory reduction.
Healthcare said it also expected to report operating revenue growth of about 18 per cent in US dollar terms to about US$270m for the full year. In NZ dollar terms the increase would be 2 per cent to $355m.
That was driven by strong growth from consumable products, which included masks and breathing circuits.
"We enjoyed robust operating revenue growth in the second half, in US dollar terms, particularly for our respiratory and acute care product group," chief executive Michael Daniell said.
Demand for respiratory humidifier systems inventory for major hospital group purchasing organisation contracts in the US exceeded Healthcare's capacity in the fourth quarter.
"We finished the year with substantial orders in hand, so we expect a strong start to the new financial year and continuing increase in demand for our products", Mr Daniell said.
Healthcare was expected to report its full year results on May 21.
Its shares closed at $3.05 yesterday, with a range during the year up to $3.86 last May and down to $2.50 in February.
- NZPA
