F&P Healthcare profit up 14 per cent

F&P Healthcare made a breakthrough with equipment to treat the condition called sleep apnoea.

Fisher & Paykel Healthcare today posted a 14 per cent rise in full year profit, buoyed by solid sales of its devices to treat sleep disorders, and forecast a 30 per cent revenue lift in the 2007 year.

"We expect a continuation of strong underlying revenue growth across our international markets," chief executive Michael Daniell said.

"We see clear opportunities to continue to grow market share in the OSA (obstructive sleep apnoea) and intensive care ventilation markets.

"In addition, we have recently introduced a number of innovative devices."

Based on current exchange rates, Mr Daniell expected trading revenue to hit $375 million in the 2007 year.

F&P Healthcare today reported a net after tax profit of $70 million in the 12 months to March 31, up 14 per cent on the $61 million recorded in the same period a year earlier.

Trading revenue rose 20 per cent to $289.5 million as F&P Healthcare stepped up its product range and increased activities in international markets.

The company said revenue for CPAP (continuous positive airway pressure) flow generators and masks -- used to treat sleep apnoea, or OSA, a condition where people briefly stop breathing during sleep -- rose 53 per cent in US dollar terms, contributing to a record operating profit of $104.1m.

F&P Healthcare, which mainly sells its products in the United States, generated around 65 per cent of its trading revenue in US dollars during the period.

Trading revenue rose 23 per cent and operating profit rose 18 per cent in US dollar terms.

F&P Healthcare's OSA division was the standout performer in the March year, reporting a 34 per cent rise in revenue on the same year ago period.

Respiratory humidification turnover rose 14 per cent and neonatal and warming product revenue rose 24 per cent in US dollar terms.

Research and development (R&D) spending rose to $17.3m, or 6 per cent of trading revenue.

F&P Healthcare declared a final dividend of 7 cents per share to be paid on June 28.

Shares in F&P Healthcare last traded yesterday at $4.45.

The stock hit a fresh high of $4.63 last week after the company said it would start selling devices to treat new conditions that might help double the market for its respiratory products.

F&P Healthcare's aim is to become a major player in the global market for sleep apnea devices.

Mr Daniell has previously said global sales of the devices may reach US$1.5 billion ($2.4 billion) this year after studies linked the condition to illnesses such as heart disease.

F&P Healthcare is one of a handful of firms that have US Food & Drug Administration approval to sell the devices in the US.

It competes against world number one, Respironics, and the second-biggest sleep disorder product maker, ResMed.

In November, F&P Healthcare estimated it had about an 8 per cent share of the global sleep-apnoea market.

- NZPA