Fisher & Paykel Lifts 1st Half Profit 12% Amid Easing Freight Costs
By Stuart Condie
SYDNEY--Medical-device manufacturer Fisher & Paykel Healthcare lifted first-half profit 12% and raised its interim dividend after lower freight costs helped widen margins.
The New Zealand-based company on Wednesday reported a net profit for the six months through September of 107.3 million New Zealand dollars (US$65.4 million), compared with NZ$95.9 million a year ago. The increase was 22% on a constant-currency basis.
Revenue rose 16% on both a statutory and constant-currency basis to NZ$803.7 million. North America was again the largest revenue contributor, with sales rising 26% to NZ$366.2 million.
The average analyst forecast had been for a first-half net profit of NZ$101 million off revenue of NZ$795 million, according to data compiled by FactSet.
Gross margin widened by 65 basis points to 60.5%, most of which came from easing freight costs. The company said it also benefited from a lower proportion of products being transported by air freight compared with a year earlier, when supply chains were strained and containers were scarce.
The company lifted its interim dividend to NZ$0.18 per share, from NZ$0.175 a year ago.
Fisher & Paykel said it expected full-year profit of between NZ$250 million and NZ$260 million from revenue of NZ$1.7 billion, based on Oct. 31 exchange rates. It reported NZ$1.7 billion revenue and NZ$250 million net profit in fiscal 2023.
Write to Stuart Condie at stuart.condie@wsj.com
(END) Dow Jones Newswires
November 28, 2023 16:34 ET (21:34 GMT)
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