F&P Healthcare's Daniell retires, upgrades guidance

NZ Herald

27 Aug, 2015 12:45 AM2 mins to read

Fisher & Paykel Healthcare chief executive Mike Daniell says the firm has weathered currency storms. Photo / Dean Purcell

Fisher and Paykel Healthcare has announced its managing director and chief executive Mike Daniell is retiring.

The board has selected Lewis Gradon, the company's existing senior vice president of products and technology as his replacement.

Gradon, 54, has been with Fisher & Paykel for the past 32 years and was previously general manager, research and development.

Chairman Tony Carter said Gradon currently lead a significant part of the business and had contributed hugely to the development and successful execution of its international growth strategy.

Carter said Daniell had been "an exceptional chief executive officer" and had driven the company's successful diversification from its traditional invasive ventilation market, intially into the obstructive sleep apnea market and more recently into non-invasive ventilation, oxygen therapy and surgery.

The company also announced today that it had upgraded its earnings guidance for the financial year ending 31 March 2016.

It said that at an exchange rate of approximately 65 cents for the NZ dollar to the US dollar for the balance of the year, it expected full year net profit after tax to be approximately NZ$135 - NZ$140 million.

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The full year net profit guidance provided by the company in May, based on an exchange range of 72 cents for the NZ dollar to the US dollar, was NZ$125 - NZ$130 million.

"Revenue growth so far this year has continued to be robust and we expect first-half constant currency operating revenue growth of approximately 12 per cent, reduced slightly as expected, due to an inventory sell down by our previous hospital distributors in the US. The US distribution transition has proceeded well" said Daniell.

"As 99% of our revenue is generated outside of New Zealand, our NZ dollar results can be influenced by exchange rate movements. This year, the NZ dollar has weakened against a number of other currencies, which has been welcomed by exporters.