Fisher & Paykel Healthcare Reports Half Year Results


Fisher & Paykel Healthcare Corporation Limited (NZSX:FPH, ASX:FPH) announced today that very strong growth in its respiratory and acute care product  group  contributed   to  profit  after  tax  of  NZ$28.3  million  for  the  six  months  ended 30 September 2008, a 51% increase on the same period last year.   Operating profit grew 48% to NZ$46.1 million.

Operating revenue
Operating revenue for the six months ended 30 September increased 24% compared to the same period last year to NZ$213.3 million, and in US dollar terms, grew 25% to US$159.6 million.

Respiratory and acute care product group operating revenue increased by 36% in US dollar terms and OSA product group operating revenue increased by 14%, in US dollar terms, compared to the same period last year.

“Demand  for our respiratory  humidifier  systems  was exceptionally  strong  in the first half as we delivered  substantial  orders  for hospital  Group  Purchasing  Organisation  (GPO)  contracts  in the United States and filled respiratory consumable backorders.

In the expanding  OSA treatment  market, we achieved an encouraging  15% growth, in US dollar terms, for total mask and flow generator  operating  revenue.   Last month, we introduced  into the United States our new premium CPAP range and two new masks, which we expect will contribute to growth in the second half”, commented Fisher & Paykel Healthcare’s CEO, Mr Michael Daniell.

“We continue  to make encouraging  progress  in developing  opportunities  for our technologies  to assist in the care of patients beyond our traditional intensive care market.   These include patients requiring non-invasive ventilation, oxygen therapy, humidity therapy and laparoscopic surgery”, concluded Mr Daniell.

Dividend
The company’s directors have approved an interim dividend for the financial year ending 31 March
2009 of 5.4 NZ cents per ordinary  share (2008: 5.4 cents), carrying  full imputation  credit.   Non- resident  shareholders  will receive  a supplementary  dividend  of 0.953 NZ cents per share.   The interim dividend will be paid on 12 December 2008, with a record date of 3 December, and an ex- dividend date of 27 November for the ASX and 4 December for the NZSX.

Research & Development, SG&A
Research  and  development  expenses  increased  by  16%  over  the  prior  comparable  period  to NZ$13.3 million, representing  6.2% of operating revenue.   The company continued to expand its product and process research and development activities and current new product projects include flow generators, masks and additional respiratory care consumables.

Selling,  general  and  administrative   (SG&A)  expenses  grew  21%  to  NZ$60.2  million  as  the company  continued  to  expand  its  operations  and  its  sales  teams  in  North  America,  Europe, Asia/Pacific and South America.

Outlook
For the remainder of the 2009 financial year the company expects to continue to achieve strong revenue growth  and  estimates  that  at an average  NZD:USD  exchange  rate of 0.55  it will achieve  operating 
revenue  growth  of  about  25%  to  approximately  NZ$450  million,  operating  profit  of  approximately
NZ$100 million and profit after tax of approximately NZ$60 million.

Financial Statements and Commentary
Attached to this news release are condensed unaudited NZ dollar financial statements and commentary. For convenience the income statement has been translated into US dollars.

The company’s unaudited financial statements for the six months ended 30 September 2008 and the comparative financial information for the six months ended 30 September 2007 have been prepared under the New Zealand equivalents  to International  Financial Reporting Standards (NZ IFRS).

Full Year Results Conference Call
Fisher & Paykel Healthcare will host a conference call to review the results and to discuss the outlook for the remainder of the 2009 financial year.  The conference call is scheduled to begin today at 10:00am NZDT, 8:00am AEDT (4:00pm USEST) and will be broadcast simultaneously over the Internet.

To listen to the webcast access the company’s website at  www.fphcare.com.  Please allow extra time prior to the webcast to visit the site and download the streaming media software required.  An online archive of the event will be available approximately two hours after the webcast and will remain onsite for two weeks.

Intending participants may register for the conference call prior to the event, using this link: http://www.fphcare.com/investor/conference.  Once registered, participants will be assigned a conference passcode and user PIN.  Registered participants can dial in to one of the numbers below and use their codes for instant access to the conference.  Alternatively, dial in to one of the numbers below a few minutes prior to the scheduled call time and identify yourself to the operator:

New Zealand Toll Free  0800 449 118
Australia Toll Free  1800 555 616
USA Toll Free  1866 369 4113
International  +61 3 9221 4420

An audio replay of the conference call will be available approximately 60 minutes after the call and will be accessible for two weeks at +61 3 9221 4752, access code 006001.

About Fisher & Paykel Healthcare
Fisher   &  Paykel   Healthcare   is  a  leading   designer,   manufacturer   and  marketer   of  heated humidification products and systems for use in respiratory care, acute care and the treatment of obstructive  sleep apnea. The company’s products are sold in over 110 countries worldwide.   For more information about the company visit  www.fphcare.com

Contact: Michael Daniell MD/CEO on +64 9 574 0161 or Tony Barclay CFO on +64 9 574 0119.

 

About Fisher & Paykel Healthcare

Fisher & Paykel Fisher 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 more than 120 countries worldwide. For more information about the company, visit our website www.fphcare.com.

 

Ends

 

Contact

Investors:

Hayden Brown
Investor Relations Manager
hayden.brown@fphcare.co.nz
+64 (0) 27 807 8073

 

Media:

Karen Knott
Senior Communications Manager
karen.knott@fphcare.co.nz
+64 (0) 21 713 911