F&P ‘working through complexities’ of new tariffs

By HME News Staff
Updated 9:09 AM CST, Mon February 3, 2025
AUCKLAND, New Zealand – Fisher & Paykel Healthcare says it does not currently anticipate a material impact from the recently announced tariffs on its net profit after tax for the 2025 financial year, but it expects its costs will likely increase for the 2026 financial year.
The company says it expects to reach its gross margin target of 65% eventually, through its long-standing continuous improvement activities across the entire business, coupled with efficient growth into existing infrastructure, but the recently announced U.S. tariffs may have added two to three years to that expectation.
“The company takes a long-term view and will be working with global suppliers and U.S. customers to provide solutions to best mitigate the impact of the tariffs on all parties,” said Managing Director and CEO Lewis Gradon. “Fundamentally, our products and therapies are designed to improve care and outcomes for patients and to reduce the overall costs of providing healthcare. Across the business, we are continuing to make improvements that reduce costs or improve efficiencies. This proven combination is how we navigate all the various cost challenges that come our way over time.”
A 25% tariff on products imported into the U.S. from Canada and Mexico and a 10% tariff on those imported from China is expected to go into effect Feb. 4.
F&P currently manufactures about 45% of its volume in Mexico and about 55% in New Zealand, and for the first half of the 2025 financial year, about 43% of the company’s revenues came from the U.S. It says about 60% of U.S. volumes are supplies from its manufacturing facilities in Mexico.
The company says it is currently “working through the complexities associated with the imposition of the tariffs.”
F&P will provide an update on its outlook for the 2026 financial year, as well as an updated estimate of the timeframe to return to the gross margin target, at its full-year results at the end of May.
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