Fisher & Paykel Healthcare profit drops 2% as demand for respiratory aids to treat Covid-19 slows
Fisher and Paykel Healthcare saw a 2% drop in profits in the first half of the year as demand slowed for their respiratory aids used to treat Covid-19.
Net income fell to $ 221.8 million in the six months to September 30, from $ 225.5 million last year. Revenue fell 1% to $ 900 million while expenses increased 5% to $ 265.3 million.
Fisher & Paykel Healthcare has seen unprecedented demand for its respirators since early 2020 as hospitals stocked up on machines and accessories used to help treat patients with coronavirus. However, growth has slowed as hospital admissions decline and demand for inventory stabilizes.
“The first half of the past fiscal year has been a period of extraordinary demand during the first outbreaks of Covid-19,” said Chief Executive Officer Lewis Gradon. “Our financial results for the first half of fiscal 2022 remained very strong. “
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Due to uncertainty over the impact of Covid-19 going forward, the company would not provide any revenue or profit forecast for the remainder of the year, he said.
In the first half of the year, sales for the company’s hospital division, which includes products used in acute and chronic respiratory care and surgery, fell 2% to $ 670 million.
Gradon said sales of hospital equipment will continue to be affected by hospital admissions linked to Covid-19 in the second half of the company’s fiscal year. However, as many countries had already increased their hospital treatment capacity, incomes are not expected to continue at a high level for the rest of the year, he said.
Sales of consumables for hospital machinery for the rest of the year are expected to be lower than the same period last year, when hospitalizations for Covid-19 peaked in North America and most European countries, did he declare. However, sales are expected to be higher than in the first half of the year, he said.
Sales of the company’s home care products, which are used to treat obstructive sleep apnea and provide respiratory support at home, edged up 0.3% to $ 227 million.
Demand for obstructive sleep apnea masks depended on new patient diagnostic rates, who may continue to be impacted by Covid-19 and the provision of treatment equipment, he said.
Still, for the rest of the year, new patient diagnoses are expected to be at or above last year’s rates, he said.
Shareholders would receive a dividend of 76 cents per share in the first half, up from 16c last year.
Gradon said the Covid-19 pandemic has seen more of its machines installed in hospitals and raised awareness among doctors around the world about its therapies and products.
“To ensure that we are well positioned to meet the demand for continued use of this installed base of hardware and to accommodate our strong portfolio of new products, we continue to invest in our infrastructure to ensure it supports our long-term growth, ”he said. .
Over the next five years, Fisher & Paykel Healthcare plans to invest approximately $ 700 million in land and buildings, including the completion of its fifth building on its Auckland campus and the acquisition of land for a second. New Zealand campus, as well as the addition of three additional manufacturing facilities outside of New Zealand. Zealand, the first of which is currently under construction in Tijuana, Mexico.