Fisher & Paykel shares jump on FY earnings
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More news: Shares in Fisher & Paykel climbed in morning trade after the health equipment provider reported growth in operating revenue and underlying profit for the 2024 financial year.
Shares added 6.2% to reach $27.03 by 10:50am AEST.
Wilsons Advisory said that Fisher & Paykel's results were in line with their estimates, with revenue meeting consensus while underlying NPAT was 5% above average forecasts.
The analysts noted that stronger new applications growth demonstrated signs of increased use outside of the company's core ICU base.
They also said gross margin improvements over the year suggested that the company's longer term margin aspirations were achievable.
Fisher & Paykel profit hit by Karaka land revaluation
The news: Health equipment provider Fisher & Paykel Healthcare recorded a near 50% drop in reported net profit after tax for the 2024 financial year, weighed by one-off costs associated with a limited product recall and tax changes in New Zealand.
The number: Reported NPAT fell 47% year on year to NZD132.6 million ($122.46 million). However, excluding three abnormal items, underlying profit was up 6% to NZD264.4 million.
Total operating revenue for the 2024 financial year was NZD1.74 billion, an increase of 10% compared to the prior year. Fisher & Paykel's hospital product group saw revenue grow 6% year on year to NZD1.1 billion, while its homecare product group increased revenue by 18% to NZD652.3 million.
Underlying gross margin — excluding a provision for the product recall — was 61.1% for the year, an increase of 216 basis points over the prior year, but short of its long-term target of 65%.
Fisher & Paykel expects FY25 operating revenue in the range of NZD1.9 billion to NZD2 billion, and net profit after tax between NZD310 million and NZD360 million. Capital expenditure for the next financial year is expected to be around NZD150 million.
The board declared a total dividend of 41.5 NZ cents per share, up 2% compared to last year.
The context: The ASX and NZX-listed company attributed the double-digit operating revenue rise to growing demand in hospital consumables and growth in its obstructive sleep apnea mask business.
The healthcare group said that reported NPAT was impacted by several abnormal items, including a NZD98 million non-cash accounting adjustment due to the revaluation of its land at its future Karaka campus land.
Net profit was also impacted by a tax expense of NZD19.3 million, following the change in New Zealand legislation removing tax deductions for the depreciation of buildings. Meanwhile, a voluntary limited recall of about 9,000 of its Airvo 2 and myAirvo 2 humidifier devices cost the company an estimated NZD20 million.
What they said: Fisher & Paykel's managing director and CEO Lewis Gradon said: "After several years of changing demand patterns, we are pleased to have returned to a trajectory of growth".
"All the right foundations are in place for future success — we have an impressive portfolio of products, strong relationships with our customers and the right infrastructure to meet our future needs", he said.
The source: ASX announcement
