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Highlights
- Fisher & Paykel Healthcare posts profits within guidance range.
- Strong hospital demand supports revenue growth despite missed forecasts.
- Company remains cautious about future hospitalisation rates.
Fisher & Paykel Healthcare (ASX:FPH), a leader in respiratory care solutions, reported half-year results that came in at the lower end of its guidance, leading to a decline in its share price. Despite robust demand from hospitals for its products, the company did not deliver the earnings upgrade that some market participants had anticipated.
The company reaffirmed its full-year guidance, expecting net profits to range between NZ$320 million and NZ$370 million, with revenue forecasts remaining unchanged. This announcement saw its shares on the New Zealand Exchange (NZX) fall by approximately 4 percent to NZ$36.83, while its Australian-listed shares (ASX) dropped by 2 percent to A$33.87.
For the first half of the financial year ending March 31, 2025, Fisher & Paykel reported a 43 percent rise in net profit to NZ$153.2 million. Revenue for the same period increased by 18 percent to NZ$951.2 million, driven by rising patient numbers and hospital census returning to pre-pandemic levels.
Chief Executive Lewis Gradon highlighted the impact of new product introductions and changes in clinical practices as key growth drivers. The company’s humidification systems, widely used in respiratory and surgical care, saw increased demand globally. Additionally, a higher-than-expected hospital census during the period and ongoing seasonal hospitalisations in the northern hemisphere contributed positively to its performance.
The company’s sleep apnoea division also saw a 14 percent boost in sales of masks and accessories, reflecting the strength of its diversified portfolio. This aligns with trends observed in competitors like ResMed (ASX:RMD), which also experienced higher-than-expected demand for similar products.
However, the company remains cautious about the second half of the financial year. Fisher & Paykel noted that hospitalisation rates in the northern hemisphere could be relatively moderate, which may influence future sales.
The company declared an interim dividend of NZ18.5 cents per share, slightly higher than the NZ18 cents declared the previous year. Despite Thursday’s share price decline, Fisher & Paykel’s stock has risen by 56 percent this year, underlining its strong market position in the respiratory care sector.
While the current results reflect significant growth, the company’s reaffirmation of guidance and cautious outlook suggest a focus on steady performance amid shifting market conditions.
