Vigorous sales put rosy complexion on Fisher & Paykel Healthcare outlook

Fisher & Paykel Healthcare's shares surged yesterday following the delivery of a rosy forecast at its annual meeting. The company expects first-half revenue to rise 25 per cent.

Shares in the medical equipment maker rose 17c to close at $3.57 last night, 4c below their highest price for the year, after chief executive Mike Daniell said expanding market share and increased product groups would likely lead to first-half earnings of $132 million to $135 million.

F&P Healthcare makes products to treat sleep disorders, including obstructive sleep apnoea, respiratory humidification, and neonatal and warming products - 98 per cent of which it sells overseas.

North America is the company's largest market, where it sells 43 per cent of its products.

The company had an extensive range of new products, and new masks, 'smart' flow generators for the treatment of sleep apnoea and other products for its respiratory and neonatal groups were on track to be introduced in the next year.

Last year it achieved record revenue of $241 million and a net profit of $61.4 million, up 12 per cent on the previous year.

Daniell said the apnoea market - an important contributor to revenue growth last year - was still growing rapidly and the company was seeing gains in market shares and sales to a wide range of overseas customers.

Growth was also strong in the worldwide respiratory humidification market, which was worth more than US$350 million and growing at about 5 per cent a year.

New breathing circuit technology - which allows water vapour passing through the expiratory tube to escape through a membrane - had been well received and the company was ramping up manufacturing capacity to meet rapidly growing demand. A humidification system for use in laparoscopic surgery would be an important driver of future revenue growth, he said.

The company is doubling the size of its East Tamaki, Auckland, factory.