New Zealand-based Fisher & Paykel Healthcare Corporation (ASX:FPH) has increased its interim dividend from 17.5 NZ cents to 18 NZ cents for the six months ending September 30, following a robust performance with a 16% rise in revenue and a 12% increase in after-tax earnings.
The company announced that revenue for the first half of the fiscal year reached NZ$803.7 million, while after-tax earnings stood at NZ$107.3 million (or 22% in constant currency). Fisher & Paykel Healthcare is optimistic about its prospects for the second half of the fiscal year, forecasting revenue of NZ$1.7 billion, maintaining its earlier projection.
However, the company does not anticipate a significant boost in earnings, with a forecast of net after-tax earnings ranging from NZ$250 million to NZ$260 million for the fiscal year ending next March, only slightly higher than the NZ$250 million reported for the previous fiscal year.
CEO Lewis Gradon stated, "Our first-half results indicate a continuation of stable ordering patterns in our Hospital business and a robust performance for Homecare."
Fisher & Paykel Healthcare reported growth in its Hospital product group, including humidification products for respiratory, acute, and surgical care, with first-half revenue totaling NZ$487.5 million, an 11% increase compared to the same period last year.
In the Homecare product group, which includes products for treating obstructive sleep apnea (OSA) and respiratory support in the home, revenue surged by 26% to NZ$314.4 million. OSA masks and accessories revenue also increased by 28% in constant currency.
Gradon added, "Headwinds such as freight rates and manufacturing inefficiencies continue to ease, while inflationary raw material and manufacturing costs remain key areas of focus for our teams."
Looking ahead, Gradon stated, "At current exchange rates, we expect operating revenue for the 2024 financial year to be approximately $1.7 billion and net profit after tax to be in the range of approximately $250 million to $260 million." He also noted that historical sales patterns suggest higher hospital consumable sales in the second half due to seasonal trends in hospitals.
