Record result for Fisher & Paykel Healthcare

Fisher and Paykel Healthcare Airvo humidifier and integrated flow generator used in hospitals. Photo Fisher and Paykel Healthcare

Fisher & Paykel Healthcare, based in East Tamaki, is to give staff bonuses totalling $29 million after a record result.

The company reported net profit after tax for the full year to March 31 of $524 million, up 82 per cent over the previous financial year.

Fisher & Paykel Fisher Healthcare is a leading designer, manufacturer and marketer of products and systems for use in acute and chronic respiratory care, surgery and the treatment of obstructive sleep apnea. The company’s products are sold in more than 120 countries worldwide.

Operating revenue was $1.97 billion, up 56 per cent or 61 per cent in constant currency. Net profit after tax was $524 million, up 82 per cent over the previous financial year.

Managing director and CEO Lewis Gradon said, “It has been an extraordinary year and we want to thank healthcare professionals for giving their all to care for patients, often under the most difficult conditions. We also want to acknowledge the people of Fisher & Paykel Healthcare for their commitment to delivering for our customers, and the partners and families of our employees for the invaluable contribution they have made.

“The unprecedented result was driven by our hospital product group, which includes Optiflow and Airvo systems used to deliver nasal high flow therapy. Sales of our hospital hardware and consumables have continued to track Covid-19 hospitalisation surges in countries around the world,” said Gradon.

Revenue for the hospital product group was $1.50 billion, an increase of 87 per cent over the previous financial year, or 94 per cent in constant currency. Hospital products made up 76 per cent of the company’s operating revenue.

Although Covid-19 restrictions impacted sleep clinics and reduced OSA diagnosis rates, revenue for the Homecare product group was $466 million, an increase of 2 per cent over the previous year.

“Gross margin decreased by 295 basis points for the year to 63 per cent or a 165 basis points decline in constant currency,” Gradon said.

This includes increased freight costs and high airfreight utilisation, which adversely impacted constant currency gross margin by approximately 230 basis points. Freight and additional Covid-19 related costs were offset by overhead leverage due to volume increases outpacing cost growth during the year.

“To recognise the incredible contributions of our people, the board has approved a profit-sharing bonus totalling $29 million for the 2021 financial year to be paid to everyone who has worked with us for a qualifying period,” said Gradon.

The company has also committed $20 million to establish the Fisher & Paykel Healthcare Foundation during the 2021 financial year. The Foundation’s charitable purposes include supporting and funding health research and programmes that improve access to healthcare, supporting environmental protection initiatives and promoting awareness of opportunities in science, technology, engineering and mathematics.

The value of the company’s total donations for the year, including product donations, was $26 million.

The company’s directors have approved a final dividend of 22 cents per share, an increase of 42 per cent on the final dividend last year. This brings the total dividend for the year to 38 cents per share, an increase of 38 per cent. The final dividend, carrying full New Zealand imputation credit, will be paid on July 7 with a record date of June 25.