Announcement
HALFYR: FPH: FPH announces result for the first half of FY22
08:30am
FPH
25/11/2021 08:30
HALFYR
PRICE SENSITIVE
REL: 0830 HRS Fisher & Paykel Healthcare Corporation Limited
HALFYR: FPH: FPH announces result for the first half of FY22
News Release
STOCK EXCHANGE LISTINGS: NEW ZEALAND (FPH), AUSTRALIA (FPH)
Fisher & Paykel Healthcare announces result for the first half of the 2022
financial year
Auckland, New Zealand, 25 November 2021 - Fisher & Paykel Healthcare
Corporation Limited today announced its results for the first half of the
2022 financial year.
For the six months ended 30 September 2021, total operating revenue was $900
million. This was a 1% decline from the same period in the previous financial
year, or a 2% increase in constant currency. Net profit after tax for the
first half was $222 million, a 2% decline from the prior comparable period,
or a 1% decline in constant currency.
Managing Director and CEO Lewis Gradon said, "For nearly two years now, our
customers have been working selflessly to care for patients during a
pandemic. Our people and our suppliers have also been working under demanding
circumstances, and we are grateful for their relentless commitment.
"As you may recall, the first half of the last financial year was a period of
extraordinary demand during the initial surges of COVID-19. Our financial
results in the first half of the 2022 financial year have continued to be
very strong," Mr Gradon continued.
In the Hospital product group, which includes humidification products used in
respiratory, acute and surgical care, revenue for the first half was $670
million, a decline of 2% from the first half of the 2021 financial year, or
an increase of 1% in constant currency. Hospital consumables grew 8% in
constant currency, and of total Hospital product group revenue, 67% was from
the sale of consumables and 33% was from the sale of hardware.
In the Homecare product group, which includes products used in the treatment
of obstructive sleep apnea (OSA) and respiratory support in the home, revenue
was $227 million, a 0.3% increase over the prior comparable period, or 3% in
constant currency.
Gross margin was 63.1%, up 135 basis points or 53 basis points in constant
currency compared to the first half of the 2021 financial year. Elevated
freight costs and air freight utilisation continued but were lower than the
same period last year, impacting gross margin by approximately 190 basis
points compared to pre-COVID-19 levels.
The company's directors have approved an interim dividend of 17 cents per
ordinary share. The interim dividend, carrying full New Zealand imputation
credit, will be paid on 15 December 2021 with a record date of 3 December
2021.
The company also announced that over the next five years it expects to invest
approximately
$700 million in land and buildings. This includes a fifth building completing
its Auckland campus and acquiring land for a second New Zealand campus. Over
the next five years the company expects to add an additional three
manufacturing facilities located outside New Zealand, the first of which is
currently under construction in Tijuana, Mexico.
"The longer-term impact from COVID-19 for our business has been a larger
installed base of our hospital hardware and increased global physician
awareness and experience with our therapies and products. To ensure we are
well-positioned to meet demand for the ongoing use of this installed base of
hardware and accommodate our strong new product pipeline, we are continuing
to invest in our infrastructure to ensure it supports our long-term growth,"
said Mr Gradon.
Given the continuing uncertainties associated with COVID-19, including the
impact on hospitalisations and public and civic responses to COVID-19 case
numbers, the company is not providing quantitative revenue or earnings
guidance for the remainder of the 2022 financial year.
"We have not changed our view on outlook for the remainder of the financial
year since we last provided an update on the 18th of August," said Mr Gradon.
"For the second half, we expect our Hospital hardware sales will continue to
be impacted by COVID-19-related hospital admissions. However, as we said in
our August trading update, many countries have already boosted their hospital
treatment capacity, so we do not expect Hospital hardware revenue to continue
at an elevated level for the rest of the year.
"In our Hospital product group, consumables volume is likely to be impacted
by a number of different factors. Those include the ongoing COVID-19
hospitalisations around the world, the severity of the flu season during the
Northern Hemisphere winter, and the ability of hospitals to return to their
pre-COVID-19 rates for surgeries.
"Our second half last year corresponded to peak COVID-19 hospitalisations in
North America and most European countries. In the absence of further
comparable hospitalisation surges around the world, we would expect our
consumables revenue for the second half of this financial year to be lower
than the second half last year. Continuing endemic COVID-19 hospitalisations,
surgical activity approaching normality and the ongoing adoption of nasal
high flow for applications other than COVID-19 would result in our
consumables revenue increasing sequentially from the first half of this year.
"In our Homecare product group, growth in OSA masks is dependent on new
patient diagnosis rates, which may continue to be impacted by COVID-19 and
the supply of treatment hardware. We continue to expect new patient diagnoses
to be at or above FY21 rates for the second half of the 2022 financial year.
"Ongoing localised surges in COVID-19 cases and civic responses indicate that
it may yet be a long journey to get to a point where business and life are
more predictable. Whatever the future holds, we are unified in our belief
that doing what is best for patients will deliver the best outcomes for the
business," concluded Mr Gradon.
Overview of key results for the first half of the 2022 financial year
o 2% decline in net profit after tax to $221.8 million.
o 1% decline in operating revenue to $900.0 million, or 2% growth in constant
currency.
o 2% decline in Hospital operating revenue to $670.2 million, or 1% growth in
constant currency.
o 24% constant currency revenue growth for new applications consumables; i.e.
products used in noninvasive ventilation, Optiflow nasal high flow therapy
and surgical applications, accounting for 72% of Hospital consumables
revenue.
o 0.3% growth in Homecare operating revenue, or 3% growth in constant
currency.
o Investment in R&D was 8% of revenue, or $75.7 million.
o 6% increase in interim dividend to 17 cps (H1 FY21: 16 cps).
About Fisher & Paykel Healthcare
Fisher & Paykel Healthcare is a leading designer, manufacturer and marketer
of products and systems for use in acute and chronic respiratory care,
surgery and the treatment of obstructive sleep apnea. The company's products
are sold in over 120 countries worldwide. For more information about the
company, visit our website www.fphcare.com.
Ends
Media & Investor Contacts:
Karen Knott
General Manager - Corporate Communications
karen.knott@fphcare.co.nz
+64 21 713 911 Hayden Brown
Investor Relations Manager
hayden.brown@fphcare.co.nz
+64 27 807 8073
Authorised by Fisher & Paykel Healthcare Corporation Limited's Board of
Directors.
Accompanying Documents
Attached to this news release are the following additional documents:
o Results in Brief
o Interim Report 2022
o Investor Presentation
o NZX Results Announcement
o NZX Distribution Notice
Constant Currency Information
Constant currency information included within this news release is non-GAAP
financial information, as defined by the NZ Financial Markets Authority, and
has been provided to assist users of financial information to better
understand and track the company's comparative financial performance without
the impacts of spot foreign currency fluctuations and hedging results and has
been prepared on a consistent basis each year. A constant currency analysis
is included on page 13 of the company's Interim Report 2022, and the
company's constant currency framework can be found on the company's website
at www.fphcare.com/ccf.
Half Year Results Conference Call
Fisher & Paykel Healthcare will host a conference call today to discuss the
results for the first half of the 2022 financial year. The conference call is
scheduled to begin at 10:00am NZDT, 8:00am AEDT Thursday, 25 November (4:00pm
USEST, Wednesday 24 November) and will be webcast.
To listen to the webcast, access the company's website at
www.fphcare.com/investor. An online archive of the event will be available
approximately two hours after the webcast and will remain on the site for two
weeks.
To attend the conference call, participants should dial in to one of the
numbers below at least five minutes prior to the scheduled call time and
identify yourself to the operator. When prompted, please quote the conference
code of: 245311.
New Zealand +64 9 913 3624
US/Canada +1 323 794 2095
Australia +61 2 7250 5438
Hong Kong +852 3008 1533
United Kingdom +44 330 336 9104
International +64 9 913 3624
End CA:00383536 For:FPH Type:HALFYR Time:2021-11-25 08:30:51
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