Auckland-based medical equipment manufacturer Fisher & Paykel Healthcare has posted a record full-year result, as the pandemic drove unprecedented demand for its products.
Its net profit for the year to March rocketed 82% to $524m, as sales increased by more than half to $1.97bn.
It is proving one of the country’s most successful business enterprises.
But even its founders, including the legendary Sir Woolf Fisher, would have been astonished at its latest remarkable performance.
Led by its outstanding CEO, Lewis Gradon, the company’s latest result was driven by an 87% increase in sales of its hospital products, including its Optiflow and Aviro systems, which have proven to be effective in treating people who have Covid-19.
Sales of its hospital hardware and consumables continued to track Covid-19 hospitalisation surges in countries around the world.
The pandemic had also accelerated the company’s expansion into different global markets, with significant growth in the North America, Europe, Asia Pacific regions.
The strength of the result saw the company look to reward all of its staff with a profit-sharing bonus of $29m. Continue reading “Investors respond perversely to F&P Healthcare’s record profit and booming sales – but staff will benefit from the cheering result”
One of the busiest companies on the NZX, investment company Infratil, has underlined that not all of the sharpest operators in NZ business have deserted Wellington for the brighter lights of Auckland.
This week the company announced it has executed a conditional agreement to acquire between 50.1% and 60% of Pacific Radiology Group, a comprehensive diagnostic imaging business, from its existing doctor shareholders for a total consideration of up to $350m.
Pacific Radiology is the largest private diagnostic imaging service provider in NZ, operating 46 clinics in the South Island and lower North Island and employing 90 radiologists.
The acquisition enterprise value of $867m implies an EV/EBITDA multiple of 12.6-13.3x.
Infratil chief executive Jason Boyes says the Pacific Radiology acquisition, if completed, will sit well with Infratil’s other high-performing, high-quality assets, and builds on its investment last year in Qscan Group, a leading diagnostic imaging business in Australia. Continue reading “The bid for Infratil from Australian Super was a fizzer – and now we can see why that’s been great for shareholders and NZ”
Technology is leading NZ’s economic growth and the tech sector could be on track to become the country’s biggest export industry, according to some familiar with the breadth of the industry here.
Not surprisingly, perhaps, Covid-19 travel restrictions levelled the playing field for Kiwi tech companies as companies around the world were forced to communicate online.
Authorities within the sector say companies in the industry have been growing faster than ever and profitability which grew three-fold between 2018 and 2019, according to the Ministry of Business, Innovation and Employment (MBIE), is still accelerating.
Again, Covid-19 has been a factor, particularly for Fisher and Paykel Healthcare, whose technology has been in heavy demand., as a result of the pandemic. Continue reading “Covid-19 has helped Kiwi tech companies – but could they become our biggest export sector?”
Learning Māori is first and foremost about having fun, according to Precious Clark, director of Maurea Consulting LTD, in a Newshub report on learning te reo Maori and embracing tikanga.
“It’s about giving people the tools so they can pronounce our words correctly and it’s about giving them the confidence to give it a go,” she said.
But getting it right isn’t always easy, Newshub’s Mike McRoberts pointed out.
His report recalled the recent experience of a Canadian brewery which apologised after making a beer with New Zealand hops which it called the Pale Ale Huruhuru.
“The strict translation means feather, but it’s more commonly used to describe pubic hair.
“After being called out by language watchdog Te Hamua Nikora, the brewery apologised.”
The beer company wasn’t alone. A leather shop in Wellington apologised, too, after coming under fire for unwittingly taking its name from the Māori word “huruhuru”. Continue reading “Firms wanting to use te reo in their branding should check with Te Hamua Nikora as well as IPONZ”
The makers of the gin once branded “indiginous” announced early in June they were back in business and their product – now known as “imagination” – was available again, in stores and online.
Since then their Facebook page has recorded that whatever it’s called, the hand-crafted gin they make in the Reikorangi Valley, near Waikanae, has gone down a treat with the experts. They were awarded a silver medal and the highest score for a New Zealand gin at the London Spirits Competition; a gold, a silver and two bronze medals at the New Zealand Spirits Awards; and a bronze medal at the International Wine & Spirit Competition in the UK.
The most recent post, on August 18, advised:
“A very satisfying way to end the medal season! We won our very first medal with our very first gin at the 2019 SIP Awards in the USA, and we’ve gone back to back with another Gold medal for our Triple Distilled Dry Gin for 2020.”
Another of their gins picked up Silver.
But it has been a harrowing year. Continue reading “Yes, you can win IPONZ approval for your branding but it’s back to the drawing board if some Māori mount an offensive against you”
The makers of Indiginous gin had a sobering experience after getting the approvals they thought they required from this country’s trade marking and branding authorities. Their brand name was approved and they went to market with the gin they make at Reikorangi Valley on the Kapiti Coast, only to be intimidated into rebranding and remarketing their product by people who barraged them and their retail outlets with a campaign of abuse and threats.
The owners of a Wellington shop which called itself Huruhuru were reported to have been similarly bombarded with abuse and threats after it emerged the name of their business could mean pubic hair.
The owners of the shop, Aynur and Ercan Karakoc, said they had wanted a name to represent New Zealand and had gone through the proper process without any issues arising. They say the brand name was approved by IPONZ’s Māori Advisory Committee and they assumed therefore it would not be offensive.
Thus the principals of two businesses – at least – have been harassed and accused of causing cultural offence despite seeking the proper authorisations from the Intellectual Property Office of New Zealand (IPONZ) and consulting its Maori Advisory Committee. Continue reading “Faafoi is far from helpful when asked how business people can avoid being accused of causing cultural offence”
Investors this week took the phenomenal result for a2 Milk in their stride, but it may have produced a few blinks round the nation’s dairy farms, particularly with the farmer-suppliers of Fonterra.
Take – for example – a2 Milk’s earnings per share of 52.39c and contrast them with Fonterra’s 17c per share in 2019, or its net profit of $385.8m versus Fonterra’s loss of $605m.
There are other mind-blowing figures from a2 Milk: total revenue of $1.73bn, up 32.8%; ebitda of $549.7m, a rise of 32.9%; and operating cash flow of $427.4m. Not to mention a cash mountain it has built up of $854.2m.
As one commentator has put it, a2 Milk with its record growth intrinsically linked to the China market, is a success story New Zealanders should both celebrate and learn from.
Even its Dunedin founders through its early years from 2000, Dr Corrin McLachlan and Howard Paterson, might be astonished at its latest result.
Continue reading “It’s the beta-casein and premium product that makes a big difference between a2 Milk and Fonterra”
Covid-19 is a disaster for the US, and for many other countries — but it has sent revenues for Auckland-based F&P Healthcare soaring. Investors in the company were ecstatic this week when the company posted a boomer profit of $287m and forecast an even better one in the current year. The share price has soared 102% in the past 12 months.
It’s a performance the country as a whole should celebrate, for more than 80% of the revenue is in US dollars.
Operating revenue was $1.26bn, up 18% over last year. Net profit rose 37% over the previous year.
The increase in revenue was largely driven by growth in the use of the company’s OptiflowTM nasal high flow therapy, demand for products to treat Covid-19 patients, and strong hospital hardware sales throughout the year. Continue reading “F&P Healthcare’s increased profit shows Covid-19 has a bright side (for some) but big spending on R&D pays off, too”
History looks for a trigger for the economy crashing: the 1929 stock market panic, the 1970s oil shock or the 2008 subprime meltdown. But while the headline events can be a catalyst, sober analysis usually gives a more complex backstory of growing economic imbalances and disastrous-with-hindsight policy settings.
So casting the Covid shock as the proximate cause, what might be underlying drivers of a sustained deterioration in the economic climate? Continue reading “How a crash (of sorts) might come”
At a time when the Covid-19 pandemic is wreaking havoc on lives and livelihoods, and sage economists are telling us the economic slump underway is “truly enormous”, it is almost impossible to find any chinks of light in the encircling gloom.
ANZ economists say the pandemic has
“ … stopped the global economy in its tracks and the impacts of this crisis will be with us in months and years to come”.
Not good news for an economy which is already feeling the effects of the crash of two its main export-earning props.
But, wait, what about the bulletin from A2 Milk on Wednesday?
The company which last provided an update on its trading performance on February 27 reported that, since then, it has continued to experience strong revenue growth across all key regions, particularly for infant nutrition products sold in China and Australia.
“We are now able to confirm that our revenue for the three months to March 31 (3Q20) was above expectations. This primarily reflected the impact of changes in consumer purchase behaviour arising from the Covid-19 situation and included an increase in pantry stocking of our products particularly via online and reseller channels. We are unable to estimate the timing and extent to which pantry stocking may unwind. Continue reading “A2 Milk continues to experience strong revenue growth as consumers change behaviour”