Fisher & Paykel Healthcare chief executive Lewis Gradon. Photo: Supplied / Fisher & Paykel Healthcare
Respiratory equipment manufacturer Fisher & Paykel Healthcare's first half result beat expectations, but is still down 57 per cent on the year earlier.
- Net profit $95.9m vs $221.8m
- Revenue $690.6m vs $900m
- Expenses $286.5m vs $265.3m
- Gross margin 59.8% vs 63.1%
- Interim/final dividend 17.5 cents a share vs 17cps
"Consistent with what we signalled in August, first half revenue was down on the prior corresponding period, which had seen significant Covid-19 driven demand," chief executive Lewis Gradon said.
"Compared to pre-pandemic levels, this represents solid growth."
The hospital product group's revenue was down 35 per cent to $438.7 million, with 87 per cent of sales coming from the consumables and 13 per cent from the sale of hardware.
"Customer stock levels of hospital consumables continued to reflect purchases of considerable amounts during our prior half, in preparation for an Omicron hospitalisation wave which proved less severe than originally anticipated," Gradon said.
The company's homecare product group, which included products used in the treatment of obstructive sleep apnea (OSA) and respiratory support in the home, saw a 10 per cent drop in revenue to $249.9 million, driven by a 16 per cent gain in sales of OSA masks and accessories.
Gradon said the company was working to address manufacturing inefficiencies, given fluctuations in demand and higher rates of sickness-related absenteeism in the manufacturing workforce.
Gradon said the second half was expected to be better than the first half, but the company was not providing a full year guidance given a number of uncertainties.
This included the severity and duration of the Northern Hemisphere flu season.
