KEY POINTS:
Fisher & Paykel Healthcare today reported a March full year net profit of $57.6 million and forecast an operating profit of around $75m in 2007/8.
Pre-tax profit was $89.6m compared to $104.1m for the prior year.
Net foreign exchange hedging gains contributed $7.9m to operating profit compared to $41.3m last year.
The 2006/7 year net profit was down 18 per cent, with the high New Zealand dollar playing a large role in the fall.
It posted an unchanged fully imputed 7 cents per share dividend to be paid on June 29.
Trading revenue from ordinary activities rose 21 per cent to a record $349.2m. It said revenue growth from its obstructive sleep apnea (OSA) product group contributed rose 27 per cent in New Zealand dollar terms.
Chief executive Michael Daniell said that positive customer acceptance of new products and increased activities in international markets contributed to continued strong sales growth in each of the company's OSA, respiratory humidification and neonatal product groups.
Humidification products revenue increased by 15 per cent and neonatal and warming revenue increased by 25 per cent compared with the prior year.
Over the year, the company derived its trading revenue in a variety of currencies with US dollars contributing 62 per cent, euros 20 per cent, Australian dollars 7 per cent, UK pounds 6 per cent, and NZ dollars 1 per cent.
After allowing for exchange rate movements and hedging gains, trading revenue grew 19 per cent in constant currency terms over the prior year.
Mr Daniell said Healthcare was continuing to gain share within the rapidly growing OSA treatment market, with particularly pleasing growth from its broad range of masks and flow generators.
"Constant currency revenue growth from masks and flow generators combined was an encouraging 28 per cent.
"Demand for our humidifier controllers and continuing market share gains by adult and neonatal breathing circuits drove constant currency revenue growth of 18 per cent over the prior year in our respiratory humidification product group," said Mr Daniell.
Neonatal product group constant currency revenue growth of 24 per cent was generated by both neonatal warmers and breathing systems.
Research and development expenses increased by 16 per cent to $20.2 million or 5.8 per cent of trading revenue.
Selling, general and administrative (SG&A) expenses grew 19 per cent to $97.6m as the company continues to expand its operations and its sales teams in North America, Europe and Asia/Pacific.
Mr Daniell said opportunities to grow market share in the OSA and intensive care ventilation markets continued to be positive.
"We expect to see a contribution to growth from recently introduced new products for the treatment of patients in a range of additional applications which include non-invasive ventilation, oxygen therapy, humidity therapy and resuscitation."
"For the 2008 financial year we expect a continuation of strong underlying revenue growth across our international markets.
At the current exchange rates of US$73c, the company expects trading revenue for the year will grow to approximately US$270m or about $370 million.
Healthcare's share closed yesterday at $3.60, down from $4.22 a year ago.
- NZPA
