Fisher & Paykel Healthcare says full year revenue and profit in line with expectations

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Fisher & Paykel Healthcare says full year revenue and bottom line profit is tracking to expectations despite the adverse affect of a stronger currency and an anticipated drop in the value of its Auckland development property.

The respiratory health products manufacturer said net profit for the year ending March was expected to be in a range of $260 million to $265m, which was a $5m to $10m improvement on its November guidance, with revenue up $30m to $1.73 billion.

Managing director Lewis Gradon said the outlook was little changed with some hedging taking the edge of a gain the value of the New Zealand dollar against the US dollar, to about 61 US cents from 58 US cents in the November guidance.

In addition, he said there was expected to be a drop in the value of its property portfolio, and in particular the development property at Karaka.

“In preliminary discussions we have been advised that the higher interest rate environment and current zoning status of our land in Karaka will likely have an adverse impact on the Karaka property valuation,” Gradon said.

“Any reduction in the value of the Karaka land would be recognised as a non-cash accounting adjustment in the income statement and will impact our reported net profit after tax for the year.

“Development of the new campus will occur over the next 30 to 40 years. We expect to submit our application for re-zoning of the Karaka land next financial year and the approvals to be granted over the coming years.”

Gradon said the updated guidance was within its expectations, with a strong underlying performance in its core businesses.

“In the Hospital product group, there has been a continuation of solid demand for our hospital consumables across the product portfolio throughout the second half, which is towards the upper end of our expectations from November,” he said.

“In OSA (sleep apnea) masks, we have continued to see strong performance from our Evora Full mask. We have received positive feedback on our revolutionary F&P Solo mask after the recent release in early markets, and we look forward to its introduction in more countries in the coming months.”

The company was expected to release the full year result 29 May.