F&P Healthcare chief Mike Daniell. Picture / Dean Purcell
F&P Healthcare chief Mike Daniell. Picture / Dean Purcell
Fisher & Paykel Healthcare has become a $3 billion company after its ballooning share price hit a record high.
The Auckland medical device maker's stock rose 2.4 per cent to close at $5.46 last night, giving it a market capitalisation of $3.04 billion.
Its shares have gained 42 per centthis year after strong financial results, new product launches, profit guidance upgrades and recent weakness in the New Zealand dollar, which benefits the exporter because it makes about half its revenue in US dollars.
At its August annual meeting the company lifted profit guidance for the year to March from $97 million to around $100 million.
"Strong demand has continued into the new financial year, driven by growing acceptance by clinicians and healthcare providers of the solutions we provide," chief executive Mike Daniell said at that time.
F&P Healthcare makes devices used for the treatment of obstructive sleep apnoea and respiratory humidifiers used in hospital intensive care units.
"The share price is going up because the business is growing and it's becoming more valuable as it makes progress operationally and the currency moves in its favour," said the head of private wealth research at Craigs Investment Partners, Mark Lister.
The company's latest profit upgrade was based on the New Zealand dollar trading at around US84c against the greenback until the end of March. Since then, the kiwi has been as low as US77.45c and was at US79.80 yesterday.
