F&P Healthcare first half profit falls 57 pc after Covid-driven rush

November 29, 2022 7:45 am

F&P Healthcare chief executive and managing director Lewis Gradon. [Source: NZ Herald]

Fisher and Paykel Healthcare’s net profit fell 57 per cent to $95.9 million as sales declined to more sedate levels after a Covid-driven rush.

The bottom line figure was slightly above the top end of company guidance, issued in August, of $95m.

The respiratory products maker said its revenue for the six months to September fell by 23 per cent to $690.6m but was above the $670m figure guided by the company.

Article continues after advertisement

F&P Healthcare raised its interim dividend by half a cent to 17.5 cents a share.

Managing director and CEO Lewis Gradon said the result was consistent with what the company signalled in August.

“Compared to pre-pandemic levels, this represents solid growth,” Gradon said.

Over the last two financial years F&P Healthcare has supplied $880 million worth of hospital hardware, the equivalent of about 10 years’ hardware sales prior to the pandemic.

The March 2021 year was the peak, with revenue hitting a record $1.97 billion, up 56 per cent on the previous year’s, and net profit coming in at $524m, up 82 per cent.

Looking ahead, the company said its second half would be impacted by several factors, including:

• The rate of Covid-19 hospitalisations and the related intensity of respiratory support required

• The severity and duration of a Northern Hemisphere flu season

• The magnitude of RSV (respiratory syncytial virus) hospitalisation surges currently experienced in some regions

• And the impact of ongoing hospital staffing challenges on the surgical procedure backlogs in many countries.