F&P Healthcare lifts forecast, expands Mexico plant

Last updated 09:03 18/02/2014
FPH 8.120 0.10 1.25%

Click for a detailed chart

Relevant offers


Health drink SOS Hydration seeks to raise $2.3m in crowdfunding campaign AFT Pharmaceuticals to list on NZX and ASX in December Brokers view: Positivity may be returning for Kathmandu Successful New Zealanders celebrated at Moet event Animal activists protest as Craddock Farms appeal begins Celebrating a year of fashion success with Harman Grubisa Xero founder Rod Drury cashes in $20m of Xero shares Former Nelson freight ferry Suilven capsizes in Fiji iPredict to close after Govt refuses anti-money laundering law exemption Runway extension: Mayors excited but Joyce not ready to loosen purse strings

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.

Ad Feedback

- Fairfax Media

Special offers

Featured Promotions

Sponsored Content