KEY POINTS:
Fisher & Paykel Healthcare has reported a 6 per cent fall in net profit to $29.7 million for the six months to September 30.
The result was on trading revenue up 28 per cent to $173.2m, while earnings before interest and tax were down 3 per cent to
$46.1m.
An interim, unchanged dividend, carrying full imputation credits, of 5.4 cents per ordinary share is to be paid on December 1.
Non-resident shareholders will receive a supplementary dividend of 0.953 cents per share.
Chief executive officer Michael Daniell said that trading revenue growth was achieved through increased activities in international markets and continued strong sales growth in each of the company's obstructive sleep apnea (OSA), respiratory humidification and neonatal product groups.
During the six months 62 per cent of the company's trading revenue was in US dollars, 20 per cent in euros, 7 per cent in Australian dollars, 6 per cent in British pounds, and 1 per cent in New Zealand dollars.
After allowing for exchange rate movements and hedging gains, the company estimated that trading revenue grew 22 per cent in constant currency terms, compared to the corresponding six months last year.
Mr Daniell said the company was confident of a stronger performance for the full year than indicated by the initial 2007 operating profit and exchange rate sensitivity guidance.
That was based on the company's performance for the six months to September, coupled with a growing contribution from recently introduced new products.
"For the remainder of the financial year we expect a continuation of strong underlying revenue growth across our product groups and international markets," Mr Daniell said.
"If average spot exchange rates are similar to those experienced in the first half, we expect to achieve an operating profit of approximately $98 million for the full year."
n the six months to September, OSA product group trading revenue increased by 33 per cent, respiratory humidification trading revenue increased by 24 per cent and neonatal trading revenue increased by 29 per cent, compared with the same period last year.
"We are continuing to gain share within the rapidly growing OSA treatment market and are encouraged by the 28 per cent constant currency growth we achieved for combined mask and flow generator revenue," Mr Daniell said.
Constant currency trading revenue growth of 23 per cent in Healthcare's respiratory humidification product group was driven by strong demand for its humidifier controllers and continuing market share gains by adult and neonatal breathing circuits.
Trading revenue growth in the neonatal product group was driven by increasing demand for the company's neonatal breathing devices, including infant oxygen therapy systems and infant resuscitators.
Research and development expenses increased 13 per cent to $9.5m, representing 5.5 per cent of trading revenue for the six-month period.
New product projects include additional breathing system consumables, flow generators and masks.
Selling, general and administrative expenses grew 20 per cent to $47.9m as the company continued to expand its operations and its sales teams in North America, Europe and Asia.
- NZPA