Fisher & Paykel Healthcare boosts profit with help of Covid-19 respirator product

June 29, 2020

With the threat of Covid-19 overwhelming hospitals with patients needing respiratory support, sales of the machine increased.

Despite the negative impact of Covid-19 on many local businesses, Fisher & Paykel Healthcare has recorded a healthy annual profit increase.

For the full year ending March 31, the company’s net profit was up 37 per cent at $287.3 million.

Managing Director and chief executive Lewis Gradon says the increase in revenue was largely driven by growth in the company’s Optiflow nasal high flow therapy machine.

With the threat of Covid-19 overwhelming hospitals with patients needing respiratory support, sales of the machine increased.

“The 2020 financial year was already on track to deliver strong growth before the coronavirus impacted sales,” said Mr Gradon.

“Beginning in January, the demand for our respiratory humidifiers accelerated in a way that has been unprecedented.

“With new processes, new procedures and new ways of working safely, we managed to double and in some instances triple, output for some of our hospital hardware products over just a few months at the end of the year.”

Revenue for other products used in respiratory, acute and surgical care increased by 25 per cent to $801.3 million.

Sales from new applications consumables, which includes products used for nasal high flow therapy, increased by 23 per cent.

With no certainty of how long the impact of Covid-19 will last, Mr Gradon says the company will continue to expand their range of innovative products based around patients’ needs.

“Some costs, most significantly freight, also remained elevated during the first three months of FY21,” says Mr Gradon.

“Due to significant uncertainty in the extent and duration of the impact of Covid-19 on global demand for our products, we have made some assumptions to allow us to provide some guidance for FY21.

“As a result, our guidance is provided on the basis that global hospitalisations due to Covid-19 peak for the first quarter of this financial year, and hospitalisations for respiratory-related illnesses and OSA diagnostic activity steadily return to normal by the end of our first half.

“Our assumption for guidance is not a prediction of the course of Covid-19 around the world. We are continuing to grow manufacturing capacity of hospital products during our 2021 financial year.”

Mr Gradon says the company remains resilient and well-positioned to respond to the ongoing global pandemic.

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