Fisher & Paykel (NZX:FPH): How will it fare in its upcoming FY22 results?

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Fisher & Paykel (NZX:FPH): How will it fare in its upcoming FY22 results?

 Fisher & Paykel (NZX:FPH): How will it fare in its upcoming FY22 results?
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Highlights

  • FPH witnessed strong results in H1 FY22 and experienced elevated demand for its hospital products
  • The Group is making continued progress in its product launches.
  • FPH expects an operating revenue in the range of $1.675 billion-$1.7 billion for FY22.

Respiratory products manufacturer and marketer Fisher & Paykel Healthcare Corporation Limited (NZX:FPH; ASX:FPH) is based in NZ and has 2 product groups in its business: Hospital product group and the Homecare product group.

As NZ is battling the Omicron outbreak, healthcare providers come as prime rescuers in helping the country fight infections. FPH and its suppliers have maintained higher production, supporting customers and advancing new projects amid the COVID-19 impact.

Performance update

The Group witnessed strong results in H1 FY22 and experienced elevated demand for its hospital products due to the global impact of the COVID-19 pandemic.

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FPH registered a 1% drop in total operating revenue that stood at $900 million and a 2% decline in NPAT figure of $221.8 million for the 6 months ended 30 September 2021 compared to the same time in the prior year. The hospital product group drove the results as it accounted for 74% of the revenue, while Homecare product revenue increased 3% in the 6-month period.

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FPH made an interim dividend payment of 17cps to its shareholders on 15 December 2021.

FPH’s progress on new products

Fisher & Paykel is making continued progress in its product launches. In August 2021, the Group released the Visairo mask for non-invasive ventilation in the US and the Evora full mask for OSA in NZ and Australia in October.

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FPH has invested $75.7 million in R&D for the first half of FY22. It also made progress on new buildings in the period and expects to invest $700 million over the next 5 years for this.

The Group plans to add 3 more manufacturing facilities outside NZ in the long-term, out of which the first one is under construction in Tijuana, Mexico.

FY22 Guidance and Outlook

FPH expects an operating revenue in the range of $1.675 billion-$1.7 billion for FY22. The Group’s hospital consumables revenue in H2 FY22 is tracking to be similar to that in H1. This has been the case due to increasing Omicron cases since January and lesser respiratory intervention needs and a relatively mild flu season in the Northern Hemisphere.

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The Company is well-placed to bring a definite change in clinical practice and enhance results for respiratory patients over a period of time. It expects to announce its results for FY22 on 25 May 2022.

On 12 April, at the time of writing, FPH was trading at $23.2, up 0.17%.

(NOTE: Currency is reported in NZ Dollar unless stated otherwise)

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