Fisher & Paykel Healthcare (ASX:FPH) first-half profit falls over 50%

On 29 November 2022, New Zealand-based medical equipment company Fisher & Paykel Healthcare Corporation Limited (ASX:FPH) released the results for the first half of FY23 on the Australian Stock Exchange (ASX).

As per the ASX announcement, for the six months ended 30 September 2022, the company generated operating revenue of NZ$690.6 million. This was higher than the company’s anticipation in its August trading update. Additionally, operating revenue for 1H FY23 was 23% (27% on constant currency) lower than the previous corresponding period (1H FY22).

The company’s net profit after tax (NPAT) for 1H FY23 saw a 57% (65% on constant currency) decrease from the prior comparable period (pcp), totalling NZ$95.9 million.

How did Fisher & Paykel’s shares react to 1H FY23 results?

Following the 1H FY23 update, shares of Fisher & Paykel surged almost 10% higher on the ASX as its net profit retreated to pre-pandemic levels. One share of Fisher & Paykel was valued at AU$21.100 with a gain of 9.895% as of 3:52 PM AEDT on 29 November.

With today’s increase, Fisher & Paykel’s shares have gained 8.21% in the last five trading sessions and 18.01% in a month. However, on a year-to-date (YTD) basis, the share value of Fisher & Paykel has shed 32.20%, and in a year, it has plunged by 33.19%.

Moreover, Fisher & Paykel’s positive performance was also in line with the S&P/ASX 200 Health Care benchmark sector. INDEXASX:XHJ was standing at 43,416.6 points, with a gain of 236.9 points around the same time.

A glance at Fisher & Paykel’s 1H FY23 highlights

• In 1H FY23, Fisher & Paykel’s hospital product group generated revenue of NZ$438.7 million, 35% lower than the previous corresponding period (pcp) (37% in constant currency).
• The homecare product group witnessed a 10% increase on pcp (4% on constant currency), totalling NZ$249.9 million for 1H FY23.
• The company’s gross margin during the first half of FY23 was 59.8%, 63.1% lower than pcp and 65% lower than its long-term target of 65%.
• The healthcare group spent NZ$84.2 million in R&D investments during the six-month period.
• Fisher & Paykel’s interim dividend increased by 3% to 17.5 cents per share; this was higher than the 17 cents per share dividend in 1H FY22.
• During 1H FY23, the group entered into a conditional agreement to acquire a 105-hectare site in Karaka, Auckland.

Talking about the 1H FY23 results, Lewis Gradon, managing director and CEO of Fisher & Paykel, said:

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Data Source: Company announcement dated 29 November 2022