Fisher & Paykel Healthcare (ASX:FPH) Announces Impact of New US Tariffs
Impact of US Tariffs
Fisher & Paykel Healthcare faces increased costs due to the newly imposed US tariffs of 25% on imports from Mexico and Canada, and 10% from China, effective 4 February 2025. Approximately 43% of the company’s 2025 revenue is from the US, with 60% of US volumes supplied from Mexico. The company does not anticipate a material impact on net profit after tax for the 2025 financial year. For the 2026 financial year, costs are expected to rise due to the tariffs, influenced by economic conditions, global responses, and foreign currency movements. The company’s gross margin target of 65% may be delayed by two to three years.
Executive Comments
Managing Director and CEO Lewis Gradon stated, “The company takes a long-term view and will be working with global suppliers and US customers to provide solutions to best mitigate the impact of the tariffs on all parties. Fundamentally, our products and therapies are designed to improve care and outcomes for patients and to reduce the overall costs of providing healthcare. Across the business we are continuing to make improvements that reduce costs or improve efficiencies. This proven combination is how we navigate all the various cost challenges that come our way over time.”
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