Fisher  and  Paykel  Healthcare puts pep back into the sharemarket

Fisher  and  Paykel  Healthcare startled  the  sharemarket  out  of  its  lethargy  this  week  when it  reported a  half-year profit  of  $221.8m  on revenue of  over $900m.  The company   again  dazzled  market analysts,  who  had  been expecting revenue  to  fall  after the  record  achieved  in the  previous  12 months, largely through the provision of  medical equipment for hospitals to combat  Covid.

The  Auckland-based  company has  become  the  flag-bearer  for the  hi-tech sector in NZ and   has  signalled  further  growth, announcing that  over the next five years it expects to invest $700m  in land and buildings. This includes a fifth building, completing its Auckland campus, and acquiring land for a second NZ campus.

Over the next five years the company expects to add an additional three manufacturing facilities located outside NZ, the first of which is currently under construction in Tijuana, Mexico.

What  sets F&P Healthcare apart from  most NZ firms  is its  investment in R&D which in this half year was 8% of revenue, or $75.7m.

The  half-year announcement  sent  investors piling  back  into the stock,  which  bounced  up 5%.

The  company’s market capitalisation is  creeping  back close  to  $20 billion. Continue reading “Fisher  and  Paykel  Healthcare puts pep back into the sharemarket”

F&P Healthcare’s increased profit shows Covid-19 has a bright side (for some) but big spending on R&D pays off, too

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”