KEY POINTS:
Fisher & Paykel Healthcare has revealed a 51 per cent lift in first half net profits to $28.3 million, with its respiratory and acute care product group growing strongly.
Operating revenue for the six months to the end of September were up 24 per cent, compared to the same period last year, to $213.3m.
In US dollar terms, revenue grew 25 per cent to US$159.6m. Operating profit grew 48 per cent to $46.1m.
Respiratory and acute care product group operating revenue increased by 36 per cent in US dollar terms and OSA (obstructive sleep apnea) product group operating revenue increased by 14 per cent in US dollar terms, the company said today.
"Demand for our respiratory humidifier systems was exceptionally strong in the first half as we delivered substantial orders for hospital Group Purchasing Organisation (GPO) contracts in the United States and filled respiratory consumable backorders," chief executive Michael Daniell said.
Healthcare will pay an interim dividend of 5.4 cents per share, unchanged from a year earlier.
For the remainder of the 2009 financial year Healthcare expects to continue strong revenue growth.
It estimated that at an average exchange rate of US55c to the NZ dollar it would have full year operating revenue growth of about 25 per cent to about $450m, operating profit of about $100m and profit after tax of about $60m.
Daniell said that in the expanding OSA treatment market, the company had an "encouraging" 15 per cent growth, in US dollar terms, for total mask and flow generator operating revenue.
Last month, it introduced to the US a new premium CPAP (continuous positive airway pressure) range and two new masks, which it expected would contribute to growth in the second half.
"We continue to make encouraging progress in developing opportunities for our technologies to assist in the care of patients beyond our traditional intensive care market," said Daniell.
"These include patients requiring non-invasive ventilation, oxygen therapy, humidity therapy and laparoscopic surgery."
Research and development expenses increased 16 per cent to $13.3m in the half year, representing 6.2 per cent of operating revenue.
Healthcare said it continued to expand its product and process research and development activities. Current new product projects included flow generators, masks and additional respiratory care consumables.
Selling, general and administrative expenses grew 21 per cent to $60.2m as the company continued to expand its operations and its sales teams in North America, Europe, Asia/Pacific and South America.
The company's shares closed at $3.12 yesterday, well up from the year low of $2.12 in January.
- NZPA
