Fisher & Paykel Healthcare (ASX: FPH) has reported its half year result to 30 September 2019.
Fisher & Paykel Healthcare Corp is a manufacturer, designer and marketer of products & systems for use in respiratory care, acute care and the treatment of obstructive sleep apnea. The company has been operating in the healthcare industry since the 60s. The healthcare business has been a separate entity since 2001 when the company split from its appliances business.
FY20 Half Year Result
The healthcare business reported that in the half year period it grew operating revenue by 12%, or 9% in constant currency terms, to $570.9 million (all amounts are in New Zealand dollars).
It reported faster growth for its hospital operating revenue, it grew by 19%, or 17% in constant currency. Management attributed some of this result to an extended flu season in the US.
There was 23% constant currency revenue growth for new applications consumables, which are products used in non-invasive ventilation, Optiflow nasal high flow therapy, and surgical applications. The benefits continue to flow from the growing body of clinical research in the use of nasal high flow therapy.
There was 2% growth in homecare operating revenue (1% decline in constant currency) and a 1% decline in constant currency revenue in OSA masks.
Thanks to growth of higher profit products, the gross margin increased by 26 basis points (0.26%) to 67.1% which helped net profit rise by 23% to $121.2 million
Fisher & Paykel Dividend
The Board decided to declare an interim dividend of 12 cents per share, an increase of 23% compared to last year.
FY20 Outlook
The company is expecting consistent underlying trends in the hospital product segment. Assuming a moderate flu season in FY20, growth in the second half of FY20 will be similar to the growth in FY19.
Homecare revenue in FY20 is expected to be similar to FY19 in constant currency terms.
Full year operating revenue is expected to be $1.19 billion and net profit after tax is predicted to be in a range of $255 million to $265 million.
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