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F&P predicts revenue boost in second half 

F&P predicts revenue boost in second half 

AUCKLAND, N.Z. – Fisher & Paykel Healthcare expects operating revenue for the first half of the 2023 financial year to be about $670 million and net profit after tax to be about $85 million to $95 million, assuming current exchange rates and a continuation of trading conditions in the first four months. 

This would represent an increase in revenue on pre-pandemic levels ($570.9 million in the first half of fiscal year 2020) and a decline in revenue compared to the prior comparable period ($900 million for the first have of fiscal year 2022). 

“During the most recent waves of the Omicron variant, fewer patients have required hospitalization and respiratory support,” said CEO Lewis Gradon. “We believe customer stock levels have been elevated during our first half, which impacts our short-term sales. This does not change the fundamentals of our business or our strategy. Our Hospital sales teams are still focused on changing clinical practice and helping ensure the hardware our customers have purchased is used to benefit a broader range of patients requiring respiratory support.” 

For the Hospital product group in the first half of the 2023 financial year, F&P assumes that, in constant currency:

  • Hardware revenue reduces to a pre-pandemic level by the end of the half;
  • New applications consumables revenue is about 75% of the prior comparable period, and above pre-pandemic levels; and
  • Invasive consumables revenue is approximately equal to the prior comparable period. 

F&P expects gross margin for the first half is expected to be approximately 60%, which is below the company’s long-term target of 65%. However, the company believes that second half revenue for the 2023 financial year will be higher than in the first half, based on:

  • Higher consumption of hospital consumables in the second half compared to the first half, with hospitalization rates reflecting pre-COVID-19 seasonal patterns; and
  • Improving global supply of CPAP hardware and the recent launch of its new Evora Full face mask contributing to continued Homecare growth. 

The company is now targeting constant currency operating expense growth of approximately 10% for the year.  


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