Fisher & Paykel Healthcare (ASX:FPH) Reports Record Revenue and Profit

Strong Financial Performance

Fisher & Paykel Healthcare Corporation Limited (ASX:FPH) announced record total operating revenue of $951.2 million for the first half of the 2025 financial year, marking an 18% increase compared to the same period last year. Net profit after tax surged 43% to $153.2 million, reflecting a strong operational performance driven by new product introductions and high hospital census levels.

Product Group Revenue Highlights

The Hospital product group generated $591.4 million in revenue, a 21% increase year-on-year. In the Homecare product group, sales reached a record $359.4 million, up 14% over the prior year. The strong performance was attributed to continuous clinical practice changes and robust demand for new product launches, particularly in respiratory and anesthetic solutions.

Gross Margin and R&D Investment

Fisher & Paykel Healthcare achieved a gross margin of 61.9%, an improvement of 141 basis points from the previous year. The company invested 12% of its revenue, equivalent to $110.1 million, into research and development, supporting its commitment to innovation in patient care solutions.

Interim Dividend and Financial Strategy

The Board of Directors declared an interim dividend of 18.5 cents per share, up 3% from the prior period. This dividend will be paid on 18 December 2024, with a record date of 6 December 2024. Additionally, the company will suspend its dividend reinvestment plan (DRP), allowing shareholders to receive their dividends in cash.

Forward Guidance

For the full year, the company maintains its guidance for operating revenue in the range of $1.9 billion to $2.0 billion and a net profit after tax between $320 million to $370 million. Managing Director and CEO Lewis Gradon commented, “We expect continued contributions from our new product introductions and ongoing clinical practice changes.” He expressed gratitude towards stakeholders for their support, which enhances patient care globally.

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Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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