- Fisher & Paykel Healthcare has hit record milestones announcing a yearly net profit of NZ$209.2 million and revenue at a whopping NZ$1.07 billion
- The ten per cent increase in profits for the year was bolstered by the hospital sector making up nearly 60 per cent of total revenue at NZ$642.3 million
- The company says the ongoing success will be utilised in further funding their research and development sector, which has seen $750 million in funding since 2001
New Zealand based Fisher & Paykel Healthcare has announced its yearly update today to shareholders, outlining a 10 per cent increase in profits for a record year.
Net profits after tax were outlined at NZ$209.2 million along with a milestone revenue of NZ$1.07 billion. Company CEO Lewis Gradon says the record results were a product of driving innovation and team dedication for continued improvement.
“It is now 50 years since the inception of our business and our results this year are a reflection of our long term and consistent growth strategy,” he said.
The company’s operating revenue in the hospital product sector, including respiratory, acute and surgical care products, increased 12 per cent for NZ$642.3 million.
These products made up 60 per cent of the company’s total operating revenue, spearheaded by the ‘Optiflow’ nasal high flow therapy, estimated to treat 3 million patients.
“[This result] was reflected in robust constant currency revenue growth of 20% from new applications consumables which now account for 62% of our Hospital consumables revenue,” Lewis said.
Fisher & Paykel Healthcare services patients in the homecare sector with
Recently, the company launched the Vitera full face mask for sleep obstruction, currently available in Australasia, Canada and Europe. Fisher & Paykel is looking to expand the product in further countries during the year.
With the large profits, the company is looking to continue investment in research and development. Since 2001, over $750 million has been put into research and development by the company.
“Last year, we invested $100 million (equal to 9 per cent of our revenue) into R&D and we have a full pipeline of new products in development,” Lewis said.
Fisher & Paykel management expressed sights set on 2020 capital expenditure for NZ$150 million as it increases capacity for existing and new products, and completion of construction at the Auckland headquarters.
“At current exchange rates, we expect full-year operating revenue for the 2020 financial year to be approximately NZ$1.15 billion and net profit after tax to be approximately NZ$240 million to NZ$250 million.
“Recent changes introduced by the New Zealand Taxation (Research and Development Tax Credits) Act 2019, a significant reduction in patent litigation costs and forecast currency benefits have been factored into our earnings guidance for 2020,” said the CEO.
Shares in FPH are down 3.29 per cent this morning however, trading at $15.28 a piece in a $9.065 billion market cap.