Fisher & Paykel Healthcare Maintains Fiscal Year Profit Guidance Despite Currency Swing

WELLINGTON, New Zealand--Fisher & Paykel Healthcare Ltd. (FPH.NZ) still expects its after-tax profit for the year through March 2018 to be as high as 190 million New Zealand dollars (US$137.3 million) despite an adverse swing in the New Zealand dollar.

The company updated its guidance at its annual shareholders meeting in Auckland on Thursday, which is broadly in line with the earnings guidance that accompanied its first-half result released in May.

That guidance was for operating revenue of approximately NZ$1 billion and for an after-tax net profit of approximately NZ$180 million to NZ$190 million, and was based on an exchange rate of 69 U.S. cents.

The Kiwi has firmed since May, so assuming a 72.5 U.S. cent exchange rate for the rest of the fiscal year, the company now expects an operating revenue "approaching" NZ$1 billion and for after-tax net profit to be in the same range.

At current exchange rates the company expects operating revenue for the first half of the 2018 financial year--the six months through September--to be approximately NZ$460 million and net profit after tax to be approximately NZ$80 million.

"The year has started well," said managing director and chief executive Lewis Gradon in a statement.

"Both of our product groups have performed well, particularly in masks for our Homecare product group, and Optiflow nasal high flow therapy in our Hospital product group."

"Our guidance for growth in first half reported profit accommodates the adverse movement in currency since May," and a full half of patent litigation costs related to a dispute with ResMed, Mr. Gradon said.

Write to Ben Collins at ben.collins@wsj.com

(END) Dow Jones Newswires

August 23, 2017 22:36 ET (02:36 GMT)