Fisher & Paykel Healthcare lifted its full-year earnings guidance as it benefits from increased demand on the back of the covid-19 virus outbreak.
"We've seen better-than-expected sales in our homecare product group combined with continued strong growth in our hospital product group. This includes an increase in demand from China related to the covid-19 coronavirus outbreak," said chief executive Lewis Gradon.
The Auckland-based maker of hospital equipment and personal sleep apnea products now expects full-year operating revenue to be approximately $1.2 billion for the year ending March 31. It raised its net profit forecast to between $260 million and $270m
Its November forecast was for operating revenue of $1.19b and net profit of $255m to $265m.
In both cases, the New Zealand dollar was assumed to be 64 US cents, it said. The kiwi recently traded at 63.32 US cents.
Gradon said F&P Healthcare is not anticipating any significant impact to its supply chain because of the coronavirus outbreak. Chinese factories have been disrupted by the restrictions, and that has flowed on to global supply chains.
F&P Healthcare doesn't have a manufacturing facility in China, although it does source raw materials from Chinese suppliers, Gradon said.
He said many suppliers expedited their supply of raw materials because F&P Healthcare makes essential medical devices.
"At this stage, we do not anticipate any significant impact on supply to our existing customers. We will continue to assess this on an ongoing basis, particularly if the outbreak escalates or continues for a prolonged period," he said.
The stock last traded at $25.20 and has lifted 13.5 per cent so far this year.