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F&P increases guidance, in part due to coronavirus outbreak

F&P increases guidance, in part due to coronavirus outbreak

IRVINE, Calif. - Fisher & Paykel Healthcare has updated its revenue and earnings guidance for the financial year ended March 31, 2020, due to better-than-expected sales in its home care product group.

“We've seen better-than-expected sales in our home care product group combined with continued strong growth in our hospital product group,” said Lewis Gradon, managing director and CEO. “This includes an increase in demand from China related to the COVID-19 coronavirus outbreak.”

F&P now expects full-year operating revenue to be about $1.2 billion (vs. $1.19 billion) and net profit after tax to be in the range of about $260 million to $270 million ($255 million to $265 million), assuming a NZ:US exchange rate of about 64 cents for the balance of the financial year.

Gradon noted that F&P doesn't have a manufacturing facility in China, but the company does buy raw materials from suppliers in the country.

“At this stage, we do not anticipate any significant impact on supply to our existing customers,” he said. “We will continue to assess this on an ongoing basis, particularly if the outbreak escalates or continues for a prolonged period.”

Gradon also noted that F&P's employees have been “working long hours to ship products quickly, assemble them and meet the need for training, particularly in Wuhan.”

“Many of our suppliers have expedited the supply of raw materials to us as a manufacturer of essential medical devices and we are deeply grateful for that,” he said.

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