Fisher & Paykel Healthcare Ends FY2020 On a Strong Note
Leading designer and manufacturer of respiratory care, Fisher & Paykel Healthcare Limited has today, delivered its full-year results. The firm’s operating revenue came in at NZ$1,263.70 million, 18 per cent higher than that of the previous year. Specifically, three broad factors contributed to the surge in revenue. Within the firm, there was a significant increase in the usage of the company’s Optiflow nasal high flow therapy as well as solid sales in hospital hardware throughout FY20. Additionally, the demand for its product to treat COVID-19 patients further boosted Fisher and Paykel’s performance.
Back in February 2020, Fisher & Paykel Healthcare witnessed an unprecedented demand for respiratory therapies. Therefore, the increased usage of its nasal high flow therapy was correlated with the treatment of COVID-19 to bring down intubation rates. At a time where governments were introducing lockdown measures and where businesses wind up operations, the firm was able to live up to the broader macroeconomic environment through the deployment of a rapid response team.
A key responsibility of the team was to identify new processes, procedures, and ways of working safely all while living up to the broader demand for its hardware products. Yet, these efforts have not been futile. This is because, in the past three months, many studies have recognised and subsequently published the benefits of Fisher and Paykel’s products. More importantly, the firm was already on track to deliver robust growth even before the pandemic broke out.
Aside to the pandemic, Fisher & Paykel continues to excel within the space of research and development. In the 2020 financial year, the firm launched a new vented F&P Nivairo full face mask to treat individuals on non-invasive ventilation. The new product boasts design features that allow for greater fit and comfort. Within the homecare product division which comprises of masks for obstructive sleep apnea (OSA), revenue climbed 9 per cent to that of $457 million. Specifically, the expansion of its F&P Vitera full-face mask into the United States accounted in part for its outstanding performance.
From a broader perspective, as 99 per cent of operative revenue is generated in currencies outside of New Zealand Dollars (NZD), Fisher & Paykel is therefore severely exposed to foreign exchange movements. Thus, the weakened NZD has allowed the group to benefit from a $17.4 million profit after tax. Collectively, the above factors have contributed to the 37 per cent increase in net profit after tax (NPAT) to that of $287.3 million.
While the outlook for FY2021 remains uncertain, CEO Lewis Gradon expects NPAT to come in between $325 and $340 million on the basis that hospitalisations peak in the first quarter of FY2021 and conditions normalise by December 2021. Nevertheless, the dual-listed firm has issued a final dividend of 15.5 cents per security, bringing the total dividend to 27.5 cents a share – 18 per cent higher than that of the previous year.
By Caroline Wong
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