Fisher & Paykel Healthcare’s latest earnings report referenced strong growth in the obstructive sleep apnea (OSA) mask segment, as well as in hospital consumables.
The New Zealand-based manufacturer announced its 2024 financial year results — for the full year ended March 31, 2024 — on May 29.
Fisher & Paykel Managing Director/CEO Lewis Gradon told investors and other stakeholders, “After several years of changing demand patterns, we are pleased to have returned to a trajectory of growth. All the right foundations are in place for future success. We have an impressive portfolio of products, strong relationships with our customers, and the right infrastructure to meet our future needs.”
Homecare product group reported 18% increase in revenue
The Homecare product group, which includes respiratory support systems as well as products to treat OSA, reported full-year revenue of $652.3 million, an increase of 18% compared to the previous financial year.
“Growth was driven by the continued success of the F&P Evora Full mask in both North America and Europe,” the manufacturer reported.
The Hospital product group — comprising humidification products for respiratory, acute and surgical care — reported full-year revenue of $1.1 billion, an increase of 6% from the previous year.
“During the 2024 financial year, the company made progress in returning to its long-term gross margin target of 65%,” the report said. “Excluding the provision for a product recall, underlying gross margin was 61.1%, an increase of 216 basis points in constant currency over the previous financial year. This was achieved through lower freight costs, manufacturing efficiencies and pricing, which more than offset the impact of inflationary cost increases.”
Continuing investment in product development
Fisher & Paykel also discussed its research and development investments — $198.2 million in 2024 — that led to launching “innovative products into new markets.”
For the Homecare segment, the manufacturer mentioned its recent launches of two new OSA masks, the F&P Solo and the F&P Nova Micro. “The F&P Solo enables automatic fitting for patients who prefer to fit the mask without assistance and is already available for sale in New Zealand, Australia and the United States,” the company reported. “The F&P Nova Micro was designed for patients who want to fit the mask manually. It has been released in New Zealand and Canada, with launches in Australia, Europe and the United States planned in the 2025 financial year.”
Looking forward to 2025
“At current exchange rates, guidance assumptions for the 2025 financial year include no significant respiratory disease events, and result in full year operating revenue in the range of approximately $1.9 billion to $2.0 billion and net profit after tax in the range of approximately $310 million to $360 million,” the announcement added. “The net profit after tax guidance assumes a further improvement in gross margin during the 2025 financial year.”
“Reflecting on our FY24 performance, we want to acknowledge the people of Fisher & Paykel Healthcare for their collective efforts,” Gradon said. “The work we do matters — and year after year, our people continue to make a difference for our customers and their patients.
“With a 50-year track record, we are building on strong foundations. Looking ahead, we are determined to keep bringing to market new solutions that deliver better outcomes for patients and sustainable, profitable growth for our shareholders.”
