Medical device manufacturer and exporter Fisher & Paykel Healthcare has altered its profit guidance in response to a strengthening New Zealand dollar.
At its annual shareholders meeting yesterday, chief executive Mike Daniell said the full-year net profit guidance of $62 million to $70 million provided in May was based on the kiwi trading at US75c to US80c against the greenback, which as a result of improved trading conditions would now equate to a net profit of $67 million to $72 million.
A firming New Zealand dollar had the company increase its assumed exchange rate range to between US78c and US82c.
Based on the new rate and improved trading conditions, Daniell said full-year net profit was expected to be in the range of $65 million to $69 million on revenue of between $540 million and $550 million.
At current exchange rates, first-half revenue was expected to be about $265 million, with net profit of $31 million.
"That would represent about 10 per cent net profit growth or about 25 per cent in constant currency terms, driven by a combination of revenue growth and improving gross margins," Daniell said.
The New Zealand dollar was trading at US80.84c against the greenback yesterday afternoon.
F&P Healthcare shares closed up 8c yesterday at $2.04.
This story has been changed from an earlier version that said F&P Healthcare had provided full-year net profit guidance of $67 million to $72 million in May.