KEY POINTS:
A weaker United States dollar is being blamed for a 30 per cent fall in Fisher & Paykel Healthcare's annual profit after tax to $35.3 million.
The result for the year to the end of March compares with $50.5m a year earlier, and was made on operating revenue
from ordinary activities up 3 per cent to $357.9m.
The company today said that continuing strong growth in sales of its respiratory, acute care and obstructive sleep apnea (OSA) products contributed to the record operating revenue.
Expanding activities in international markets and increasing demand, particularly for its masks, respiratory consumables, humidifier systems and neonatal devices all contributed to growth.
A final dividend of 7 cents per ordinary share is to be paid, carrying 1.5c of imputation credit. Non-resident shareholders will receive a supplementary dividend of 0.618cps.
Operating profit for the year was down 27 per cent to $58.1m.
For the 2009 financial year, the company said it expected a continuation of strong underlying revenue growth across its product range and expected operating revenue to grow about 15 per cent in US dollar terms to US$310m.
At an average exchange rate of US80c to the NZ dollar, the company expected to achieve operating revenue of about $388m and an operating profit similar to that achieved for the latest year.
At an average exchange rate of US75c, operating revenue of about $415m was expected, with an operating profit increase of about 20 per cent.
"The company's opportunities for growth continue to be very positive. Our US distribution partner, Cardinal Health, has secured another significant GPO (Group Purchasing Organisation) contract and we have seen a very robust start to sales in the new financial year," chief executive Michael Daniell said.
Healthcare had recently started selling its new SleepStyle Auto flow generator for OSA treatment and had several new masks close to introduction.
Demand for the company's respiratory humidifier systems continued to be strong and steady growth from new applications was expected, Mr Daniell said.
During the year to the end of March about 58 per cent of operating revenue was in US dollars, Healthcare said.
The reductions in operating profit and profit after tax primarily reflected the effect of a weaker US dollar.
In US dollar terms, respiratory and acute care product group operating revenue increased by 19 per cent and OSA product group operating revenue increased by 18 per cent, compared to the previous year.
Mr Daniell said the company had continued to gain share within the rapidly growing OSA treatment market, with total mask and flow generator operating revenue growth of 21 per cent in US dollar terms.
Demand for respiratory humidifier systems inventory for major hospital GPO contracts in the US was high in the last quarter and the company finished the year with substantial orders in hand.
Sales of its neonatal care product range, which included infant warmers, oxygen therapy systems and resuscitators, were also strong, Mr Daniell said.
During the year the company had continued to expand the application of its products and technologies to the care of patients beyond its traditional markets.
Those included patients requiring non-invasive ventilation, oxygen therapy, humidity therapy and laparoscopic surgery.
"We are very encouraged by the progress we are making in expanding the application of our devices to assist the care of an increasing range of patients," he said.
About 20 per cent of Healthcare's respiratory and acute care consumables revenue for the year was generated by the new applications.
Research and development expenses were up 17 per cent to $24.1m, representing 6.7 per cent of operating revenue for the year.
The company continued to expand its research and development teams and current new product projects included flow generators, masks, a COPD humidifier system and additional respiratory consumables, Healthcare said.
Selling, general and administrative rose 2 per cent to $97.9m, or 9 per cent in constant currency terms, as the company continued to expand its operations and its sales teams in North America, Europe, Asia-Pacific and South America.
Healthcare's shares closed yesterday at $2.76, having ranged between $3.70 and $2.50 in the past year.
- NZPA