Fisher & Paykel Healthcare post revenue drop

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Fisher & Paykel Healthcare has posted a drop in revenue for the first four months of the 2022 financial year, as demand related to Covid-19 decreases.

Photo: Supplied / Fisher & Paykel Healthcare

The company manufactures face masks, dehumidifiers and other breathing related devices which have shown to be effective in treating Covid-19.

Revenue for the first four months was $583 million, two percent below the previous comparable period, which it says was a time of high demand during the initial surges of Covid-19 in North America and Europe.

Nearly three-quarters of its revenue was from its hospital product group and just over a quarter from its homecare product group.

The company’s hospital product group also saw a three percent drop in revenue, caused by sharp decrease in hardware sales.

But its homecare product group saw a four percent increase in revenue, driven by growth in obstructive sleep apnoea masks.

Compared to pre-Covid-19 levels, overall hardware volume remained elevated, largely driven by some regions experiencing a surge in hospital admissions, it said.

But in North America and Europe, total hardware sales dropped 62%, and total consumable sales declined 14%, influenced by dropping hospital admissions and customers stockholding decisions. However, sales remain high compared to pre-Covid levels.

Managing director and chief executive Lewis Gradon said, “We would like to express our gratitude for the incredible efforts of healthcare professionals who are caring for patients during another difficult year.

“We would also like to acknowledge the people of Fisher & Paykel Healthcare working behind the scenes in our manufacturing facilities, warehouses, offices and at home to meet the ongoing global demand for respiratory products during the pandemic,” said Gradon.

The company said given the uncertainties associated with vaccination rates, its efficacy and public and civic responses to Covid-19 cases, it won’t provide quantitative revenue or earnings guidance for the remainder of the year.

“With the ongoing global vaccination activity, and most countries now having experienced a Covid-19 hospitalisation surge resulting in a corresponding boost in hospital treatment capacity, we do not expect our Hospital hardware revenue to continue at this elevated level for the remainder of the financial year,” said Gradon.

Over the short term, the company expects hospital sales will continue to be impacted by Covid-19 related hospital admissions.

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