F&P Healthcare lifts guidance

Fisher & Paykel Healthcare has boosted its full-year earnings guidance after a strong first half that saw net profit jump 18 per cent year-on-year to $33.3 million.

The company, which is listed on the NZX and the ASX and makes medical equipment such as sleep apnoea masks, said it now expected full year net profit to be between $69m and $72m. That was an increase of $3m to $4m on guidance given at its annual general meeting in August.

FPH said the strong first half result was down to revenue growth, improved gross margins and operating efficiencies.

Operating revenue in the company's respiratory and acute care division rose 11 per cent, driven by increasing acceptance of its respiratory humidification systems and revenue from new products.

Revenue for its obstructive sleep apnoea range rose by 3 per cent - when exchange rate fluctuations were excluded, thanks in part to the success of its new nasal pillows and nasal masks.

Chief executive Michael Daniell said it expected constant currency revenue growth to increase further in the second half of the year - the six months to March 31 - as new products and applications continued to gain traction.

FPH declared an interim dividend of 5.4 cents per share. Its shares are currently priced on the NZX at $2.44.

The company reported a flat full-year net profit of $64.1m for the year ending March 31 2012, blaming the stagnant result on the volatile New Zealand dollar.

- © Fairfax NZ News