Fisher & Paykel Healthcare lifts profit guidance on hospital demand

Fisher and Paykel Healthcare specialises in making respiratory products.

Growth in its hospital products business has prompted respiratory products maker Fisher & Paykel Healthcare to upgrade its earnings forecasts for the year.

The company also said US tariffs will not affect its long-term direction.

At January 31 exchange rates, the company now expects full-year operating revenue to be about $2.3 billion for the March year, with a net profit of $450 million to $470m.

The previous guidance issued last November, based on a NZ/US exchange rate of US57c, was for operating revenue to be in a range of $2.17b to $2.27b, with a full net profit after tax of $410m to $460m.

Last week, the US Supreme Court ruled US President Donald Trump’s sweeping global tariffs illegal.

In response, an incensed Trump has said he will impose global tariffs of 15% on all goods coming into the US.

F&P Healthcare’s updated guidance did not incorporate any potential refund of US tariffs paid to date during the 2026 financial year.

“We have continued to see good growth across the full range of our hospital products so far during our second half,” managing director and chief executive Lewis Gradon said.

“While relative seasonal respiratory hospitalisations in the Northern Hemisphere winter may continue to impact the second-half result, our performance to date suggests pleasing progress in our efforts to change clinical practice,” Gradon said.

“Continuous improvement activities and other efficiency gains are also contributing to improvements in our gross margin and operating margin,” he said.

The company noted the US Supreme Court announced it has invalidated tariffs imposed under the International Emergency Economic Powers Act (IEEPA).

“There are still a number of uncertainties regarding the implications of the Supreme Court’s ruling for companies that import into the United States,” it said.

“The company continues to work through the complexities associated with the US court rulings, refund processes and application of free trade agreements and the Nairobi Protocol to its products, and will provide an update on tariff impacts with its full year results at the end of May.”

The company said it did not expect US tariff issues to have a material impact on the company’s long-term direction, strategy or sustainable profitable growth.

JamieGray is an Auckland-based journalist, covering the financial markets, the primary sector and energy. He joined the Herald in 2011.

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