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

Follow us on Google News:
 Fisher & Paykel Healthcare (ASX:FPH) first-half profit falls over 50%
Image source: © Cpoungpeth | Megapixl.com

Highlights

  • Fisher & Paykel Healthcare published its 1H FY23 results on the ASX today (29 November).
  • Following the news, the New Zealand-based healthcare company’s shares soared above 10%.
  • The company’s NPAT for 1H FY23 was 57% lower than the prior comparable period.

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:

Image Source: © 2022 Kalkine Media ®

Data Source: Company announcement dated 29 November 2022

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.

Featured Articles

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK