Skip to Content

F&P sees ‘a lot of drivers’ for growth in home care

F&P sees ‘a lot of drivers’ for growth in home care

Lewis GradonAUCKLAND, New Zealand – Fisher & Paykel Healthcare’s Homecare Product Group was a bright spot in the company’s financial results for the first half of the 2023 financial year, with revenue up 10% over the prior comparable period. 

Revenue for OSA masks and accessories, specifically, increased 16% on the back of the positive reception to F&P’s new Evora Full. The mask, which features a floating seal and stability wings, received 510(k) clearance from the U.S. Food and Drug Administration in April.  

“We’ve got a lot of drivers going on there,” said Lewis Gradon, managing director and CEO, during a conference call to discuss the company’s latest financial results. “We’ve got a new product that’s had a fabulous reception. We’ve got CPAP supply improving over time.” 

Overall, F&P reported $690.6 million in operating revenue, a 23% decline, and $95.9 million in net profit after tax, a 57% decline. 

Evora is expected to contribute to continued growth in the Homecare Product Group for the remainder of the financial year, and to support this and other growth, F&P continues to invest in manufacturing. It’s in the process of completing a fifth building in New Zealand and has plans to open a new facility in Guangzhou, China.  

“We have a well-established sales footprint in China, which has been run out of Guangzhou for almost 20 years now,” Gradon said. “And this new facility is aligned with our distributed supply chain strategy. It will start with a select range of products to service local markets and it provides us with optionality and flexibility to respond to demand over time.” 

F&P also expects improvement in constant currency gross margin for the remainder of the financial year, with supply chain constraints showing signs of easing, company officials said. 

“There are two components to that improvement in the second half,” said Lyndal York, CFO. “Freight rates are part of it – we have seen them come down. If the decrease accelerates, there’s potential for further improvement, (but) it could go either way. The other big factor is labor will reduce significantly in the second half, as we've reduced our manufacturing workforce through the first half, primarily the temporary employees in New Zealand that we hired during the COVID spike, as well as through natural attrition in Mexico.” 


To comment on this post, please log in to your account or set up an account now.