What is Fisher & Paykel’s (NZX:FPH) stance for the rest of FY22?

Highlights

  • Fisher & Paykel Healthcare provided an update for the first four months of FY22.
  • However, it is not providing any earnings guidance for the remaining part of FY22, owing to the uncertainties linked with COVID-19, etc.
  • Considering the current global vaccination activity, FPH does not expect its hospital hardware revenue to soar at high levels for the rest of FY22.

Based in Auckland, Fisher & Paykel Healthcare Corporation Limited (NZX:FPH; ASX:FPH) is a big name in the healthcare sector across the globe. It designs, develops, as well as supplies quality products to be used for respiratory and acute care.

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ALT +TAG- Fisher & paykel is a leading designer, and marketer of products for use in respiratory care, etc.

Source: Copyright © 2021 Kalkine Media

A quick look at its FY21 performance

FPH recorded an NPAT of NZ$524.2 million and operating revenue of NZ$1.97 billion in FY21, owing to a record growth in its hospital product group.

Must Read: Which are 10 major healthcare companies trading on NZX?

2021 Annual Shareholders’ Meeting

Due to health concerns and risks associated with COVID-19, the Company had organised a virtual Annual Meeting of its shareholders on 18 August.

A peek into FPH’s trading update for the initial part of FY22

In its ASM, the Company gave an update for the initial four months of FY22, ended 31 July 2021. The revenue was recorded at NZ$583 million during the said period, with 26% of the revenue coming from FPH's homecare product group, while the remaining 74% is attributed to its hospital product group.

ALT +TAG- FPH’s FY22 trading update for 4 months

Image source: © 2021 Kalkine Media New Zealand Ltd, data source- Company’s announcement

However, the revenue from the homecare product group was up 4% on pcp.

On the other hand, the revenue arising from the Company’s hospital product group was down by 3% on pcp. Out of the total hospital revenue, 66% came from the sale of consumables, while 34% resulted from hardware sales.

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No earnings guidance for the remainder of FY22

Due to uncertainties associated with the pandemic and its variants, Fisher & Paykel Healthcare Corporation did not declare any earnings guidance for the remaining part of FY22.

With the rollout of the vaccination programme across the globe, many countries witnessed a rise in their hospitalisation numbers. However, FPH does not anticipate this surge in its hospital hardware revenue to continue for the rest of the financial year.

However, in the short term, FPH does expect its hospital consumables sales to continue to be impacted by the pandemic, for instance, in North America, the demand for hospitalisation is on the rise due to the resurgence of COVID-19.

Moreover, public, and civic responses would greatly influence its demand for consumables in the future.

Further, freight costs have been on the higher side, and the Company continues to expand its investments in various research and development programmes.

Related Read: What is Fisher & Paykel’s (NZX:FPH)  outlook for the remaining FY22 period?

At the time of writing, on 9 September, Fisher & Paykel Healthcare Corporation was trading up by 0.61% at NZ$33.200.

Bottom Line

Fisher & Paykel Healthcare Corporation continues to focus on delivering profitable, as well as sustainable growth through improved products and systems while continuing its global expansion.

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