FISHER & PAYKEL HEALTHCARE DELIVERS RECORD FULL YEAR RESULT, NET PROFIT UP
27%
Auckland, New Zealand, 27 May 2016 - Fisher & Paykel Healthcare Corporation
Limited today reported record net profit after tax of NZ$143.4 million for
the year ended 31 March 2016, an increase of 27% over the prior year.
Operating revenue was also a record, at NZ$815.5 million, 21% above the prior
year or 14% growth in constant currency.
The company is the global leader in respiratory and acute care (RAC)
humidification systems and a leading provider of products for the treatment
of obstructive sleep apnea (OSA).
Chief Executive Officer Lewis Gradon said, "We indicated in November 2015
that we expected net profit after tax for the full year to be between
approximately NZ$135 million and NZ$140 million, and we are very pleased to
have exceeded that. This result is due to strong uptake of our products
across both the hospital and homecare settings and a continuation of gross
margin expansion. In particular, our Optiflow(TM) nasal high flow therapy
products and innovative range of OSA masks have driven significant growth."
The company''s directors have approved an increased fully imputed final
dividend of 10.0 cents per ordinary share, an increase of 25% on the previous
year.
Both of the company''s major product groups, Hospital/RAC and Homecare/OSA
delivered record operating revenue results. RAC product group revenue grew
22% to NZ$436.3 million, or 15% growth in constant currency, and OSA product
group revenue grew 21% to NZ$365.8 million, or 12% growth in constant
currency.
"Growth in revenue from our Hospital/RAC product group accelerated over the
second half as we benefited from the successful transition of US hospital
distribution to our own team. Growth in new applications for our products
outside our traditional invasive ventilation market was particularly robust,
with 37% revenue growth, or 30% in constant currency, for the year" said Mr
Gradon. "This comes on the back of a growing body of clinical evidence
demonstrating the effectiveness of our Optiflow nasal high flow therapy in
reducing the need for more invasive therapies and the length of hospital stay
for patients.
"We are also very encouraged by the robust 21% revenue growth in our OSA
product group. Our Simplus(TM) and Eson(TM) range of masks, used in the
treatment of OSA, have performed strongly and have been a key contributor to
growth. Overall, OSA mask revenue was up 31%, or 21% in constant currency,
compared to the previous year. Our myAIRVO(TM) humidifier with integrated
flow generator also performed strongly, with increasing demand from home
healthcare providers."
Gross margin increased by 284 basis points during the financial year due to a
favourable product mix and increased volume from the company''s Mexico
manufacturing facility.
The proportion of the company''s revenue generated from recurring items, such
as consumables and accessories, continued to increase and accounted for 83%
of operating revenue.
Investment in research and development (R&D) continued to be significant. R&D
expenses grew by 13% to NZ$73.3 million, representing 9% of operating
revenue. "Our consistent investment in R&D is fuelling one of our most
exciting periods of new product development, with humidifier controllers,
masks, respiratory consumables, flow generators and compliance monitoring
solutions all expected to be released during this current year," said Mr
Gradon.
The company''s change to a direct distribution model for its hospital
respiratory care products in the United States took effect in July 2015. An
expanded distribution centre and hospital sales and support team was
established in the US to support this change.
"We have expended considerable effort into ensuring that we have the
resources in place to serve our hospital customers in the US and to promote
the benefits of our innovative respiratory care products. We anticipate that
this sales focus on our own products will support an increase in revenue
growth over time, particularly in non-invasive therapies such as
Optiflow(TM). We have already begun to see the early benefits of this
approach," said Mr Gradon.
The increased final dividend of 10.0 cents per share, carrying full New
Zealand imputation credit, will be paid on 8 July 2016. The dividend
reinvestment plan (DRP), under which eligible shareholders can elect to
reinvest all or part of their cash dividends in additional shares, will again
be made available in respect of the 2016 final dividend. The DRP will be
offered without a discount in respect of the 2016 final dividend payment.
Outlook for FY2017
"Continuous product improvement, serving more patient groups, broadening the
range of assistance we can provide for each patient and expanding our
international presence is a strategy that is well proven and has guided us to
record operating revenue every year over more than a decade. We believe that
this consistent strategy will continue to deliver robust revenue growth in
the current year.
"At current exchange rates we expect full year operating revenue to be
approximately NZ$900 million and net profit after tax to be approximately
NZ$165 million to NZ$170 million," concluded Mr Gradon.
Full Year Result highlights:
o 27% growth in net profit after tax to a record NZ$143.4 million.
o 25% increase in final dividend to 10.0 cps (2015: 8.0 cps).
o 21% growth in operating revenue to a record NZ$815.5 million, 14% growth in
constant currency.
o 22% growth in RAC operating revenue, 15% growth in constant currency.
o Revenue growth of 30% in constant currency for RAC consumables used in
noninvasive ventilation, Optiflow nasal high flow therapy and surgical
applications, accounting for 51% of RAC consumables revenue.
o 21% growth in OSA operating revenue, 12% growth in constant currency.
o Strong performance from OSA masks, 21% revenue growth in constant currency.
o Gross margin improvement of 284 basis points for the full year, 278 basis
points in constant currency.
o Investment in R&D increased by 13% to NZ$73.3 million, representing 9% of
operating revenue.
About Fisher & Paykel Healthcare
Fisher & Paykel Healthcare is a leading designer, manufacturer and marketer
of products and systems for use in respiratory care, acute care, surgery and
the treatment of obstructive sleep apnea. The company''s products are sold in
over 120 countries worldwide. For more information about the company, visit
our website www.fphcare.com.
Ends
Contact: Marcus Driller, Investor Relations & Corporate Affairs Manager on
+64 9 574 0110.
Accompanying Documents
Please find attached to this news release the following additional documents:
o Results in Brief
o Annual Report 2016, including financial commentary and constant currency
analysis
o Annual Review 2016
o Corporate Governance Statement and ASX Appendix 4G
o Appendix 1 and Appendix 4E reports
o Appendix 7
o Section 209 notice
The 2016 Annual Report and Annual Review will be available online at
www.fphcare.com/2016annualreport and the Corporate Governance statement will
be available at www.fphcare.com/corporategovernance.
Constant Currency Information
Constant currency information included within this news release is
non-conforming financial information, as defined by the NZ Financial Markets
Authority, and has been provided to assist users of financial information to
better understand and track the company''s comparative financial performance
without the impacts of spot foreign currency fluctuations and hedging results
and has been prepared on a consistent basis each year. A constant currency
analysis is included on page 24 of the company''s Annual Report 2016 and the
company''s constant currency income statement framework can be found on the
company''s website at www.fphcare.com/ccis.
Full Year Results Conference Call
Fisher & Paykel Healthcare will host a conference call today to review the
results and to discuss the outlook for the 2017 financial year. The
conference call is scheduled to begin at 10:00am NZST, 8:00am AEST (6:00pm
USEDT) and will be broadcast simultaneously over the internet.
To listen to the webcast, access the company''s website at
www.fphcare.com/investor. Please allow extra time prior to the webcast to
visit the site and download the streaming media software if required. An
online archive of the event will be available approximately two hours after
the webcast and will remain on the site for two weeks.
To attend the conference call, participants will need to dial in to one of
the numbers below at least 5 minutes prior to the scheduled call time and
identify yourself to the operator. When prompted, please quote the
conference code of: 1421463.
New Zealand Toll Free 0800 446 046
USA Toll Free 1800 742 9301
Australia Toll Free 1800 725 000
Hong Kong Toll Free 800 906 648
United Kingdom Toll Free 0808 234 1369
International +61 2 8373 3610
An audio replay of the conference call will be available approximately 2
hours after the call and will be accessible for two weeks by dialing one of
the numbers below. When prompted please enter the conference code of:
1421463.
New Zealand Toll Free 0800 453 213
USA Toll Free 1855 452 5696
Australia Toll Free 1800 153 898
Hong Kong Toll Free 800 963 117
United Kingdom Toll Free 0808 234 0072
International +61 2 9003 4211
End CA:00283077 For:FPH Type:FLLYR Time:2016-05-27 08:53:16