F&P Healthcare lifts forecast, expands Mexico plant
Fisher & Paykel Healthcare has raised its earnings guidance and brought forward plans to expand its manufacturing facility in Mexico.
The firm's annual profit for the year to March 31 is now seen at $97 million, up from the November forecast of $90-$95m.
"Demand during the second half has been very encouraging, particularly for our Simplus, Eson and Pilairo Q masks, which are used for the treatment of OSA,'' chief executive Michael Daniell said.
''Operating margin has continued to improve as a result of product mix, operating efficiency gains and manufacturing at our Mexico facility".
The company said it will expand its plant in Tijuana, Mexico, spending $4m on a fit-out to increase the manufacturing area by two thirds.
The plant is expected to be manufacturing approximately half of the company's consumable product volume within three years, F & P Healthcare said.
"We have brought forward the expansion of the Tijuana facility to ensure that we can meet anticipated demand as a result of strong customer acceptance of products such as our new masks and Optiflow oxygen therapy system,'' Daniell said.
In the United States later this year, Medicare will begin to penalise hospitals for excessive chronic respiratory patient readmissions, he said.
''We believe that this will increase the demand for our products which can help to improve care in the home for patients with chronic respiratory disease."
The company said it will continue to invest at its site in Auckland, where a number of new product platforms and associated manufacturing lines were being developed.