Fisher & Paykel Healthcare Corp. (NZX: FPH) credited strong numbers from its obstructive sleep apnea (OSA) masks and hospital consumables businesses in announcing that the company had surpassed the $2 billion annual revenue mark for the first time in its history.
The announcement came during Fisher & Paykel’s earnings call on May 28, which covered results for the full year ending March 31, 2025.
Lewis Gradon, Fisher & Paykel’s managing director and CEO, reported homecare business operating revenue of $739.9 million for fiscal year 2025, an increase of 13% vs. fiscal year 2024 numbers. OSA mask revenue was up 14%, and 11% in constant currency, for fiscal year 2025.
“We released new products across the hospital and homecare businesses during the year with the Nova Nasal being added to our OSA mask portfolio, and this is now available in New Zealand and Australia,” Gradon said. “if you look at our second half, growth was 9% in constant currency terms after a strong 14% in the first half. And we saw this good growth driven by the new masks that we launched during the year with a number of competitor introductions during our second half.”
During the earnings call’s Q&A session, Gradon was asked if full-face OSA masks are “an area of focus at the moment, given you [are] sort of probably overdue a new product in that category?”
Gradon said, “I think that’s absolutely fair.”
The CEO was also asked if Fisher & Paykel has seen any indications of patients stopping their OSA treatments after using GLP-1 products and achieving weight loss.
“Nothing I’ve seen or heard, and Justin [Callahan, vice president of sales and marketing] is shaking his head as well,” Gradon answered.
Regarding the potential impact of tariffs, “Practically all of our finished goods in Mexico are compliant with the USMCA [United States-Canada-Mexico Agreement],” Gradon noted. “And after applying the Nairobi protocol, that leaves us with a 10% tariff on hospital products out of New Zealand.”
The Advanced Medical Technology Association described the Nairobi protocol as “an international agreement that allows for duty-free importation of products designed or adapted for the use or benefit of persons with disabilities.”
“We are going to continue with a holistic approach to improving the gross margin, just like we always have for all cost increases that come our way, whether it’s driven by inflation, materials, exchange rate, freight or tariffs or whatever the source of the increase,” Gradon said. “And that’s our long-standing approach of continuous improvements across all of the business processes, improving efficiencies and making better use of our overheads.”
Gradon added that OSA products “are covered by the Nairobi protocol.”
In the earnings call announcement, Fisher & Paykel said, “The company remains committed to returning to its long-term gross margin target of 65%. For the 2025 financial year, gross margin was 62.9%.”
