Fisher & Paykel Healthcare says new products help drive profit up by 43%

F&P Healthcare has lifted its first-half profit.

Fisher & Paykel Healthcare said new products helped drive the company’s net profit up by 43% to $153.2 million in the first half.

Market expectations were for a net profit of around $155m for the September half.

The respiratory products maker with $22.5 billion market capitalisation said total operating revenue was a record $951.2m, an increase of 18% from the prior corresponding period or 17% in constant currency terms.

The company said the result was driven primarily by new product introductions and changing clinical practice.

“Early indications are that a relatively high hospital census during the period may have contributed as well, as hospitals returned to more normalised staffing and capacity, and seasonal hospitalisations in the Northern Hemisphere from full-year 2024 persisted into the beginning of our current financial year,” managing director and chief executive Lewis Gradon said.

For the hospital product group, which includes humidification products used in respiratory, acute and surgical care, first-half revenue was $591.4m, an increase of 21% over the same period last year in both reported and constant currency.

Hospital new applications consumables revenue increased 24% in constant currency.

For the homecare product group, first-half revenue was a record $359.4m, an increase of 14% on the first half of last year, or 13% in constant currency.

Sales of masks and accessories for treating obstructive sleep apnoea (OSA) were up 14%.

“Growth has been broad-based across our entire portfolio of hospital products, including in invasive and noninvasive ventilation and Optiflow for respiratory and anaesthesia patients, all suggesting that we are making headway with changing clinical practice,” Gradon said.

Looking ahead, the company kept its full-year guidance, issued in August, unchanged.

F&P Healthcare still expects operating revenue to be in the range of approximately $1.9 billion to $2b and net profit after tax to be between $320m and $370m.

“In our homecare product group, we have introduced three new mask models into major markets over the last 10 months,” Gradon said.

“They are performing well, and we think they will continue to drive similar results for the remainder of the financial year,” he said.

F&P Healthcare increased its interim dividend to 18.5 cents from 18 cents per share in the first half of the prior year.

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