Fisher & Paykel Healthcare Corp Ltd (ASX: FPH) has reported its full year result to 31 March 2019.
Fisher & Paykel Healthcare Corp is a manufacturer, designer and marketer of products & systems for use in respiratory care, acute care and the treatment of obstructive sleep apnea. The company has been operating in the healthcare industry since the 60s. The healthcare business has been a separate entity since 2001 when the company split from its appliances business.
What Fisher & Paykel Healthcare Reported
The Kiwi company said that it achieved operating revenue of NZ$1.07 billion, which was up 9%, or up 8% in constant currency terms.
Hospital operating revenue increased by 12% to NZ$642.3 million and 6% growth of Homecare revenue to NZ$421.5 million. There was 20% revenue growth in constant currency terms of consumables used in non-invasive ventilation, Optiflow nasal high flow therapy and surgical applications.
Around 86% of the company’s revenue was generated from recurring items, such as consumables and accessories.
On a region basis, the standout was the Asia Pacific region which registered 15% revenue growth.
The company revealed that it managed to grow net profit after tax (NPAT) by 10% to NZ$209.2 million.
Fisher & Paykel spent NZ$100.4 on research and development (R&D), which amounted to 9% of revenue.
Fisher & Paykel Healthcare Dividend
The Board decided to increase the final dividend by 8% to 13.5 NZ cents per share.
Fisher & Paykel Healthcare Management Comments
Lewis Gradon, Managing Director and CEO of Fisher & Paykel said: “It is now 50 years since the inception of our business and our results this year are a reflection of our long term and consistent growth strategy.”
Is Fisher & Paykel A Buy?
In FY20 the company expects to generate NZ$1.15 billion of operating revenue and net profit in a range of NZ$240 million to NZ$250 million. The company also said it’s going to spend around NZ$150 million on capital expenditure.
Fisher & Paykel Healthcare is no doubt one of the best healthcare shares on the ASX with an impressive ability to grow revenue, the profit margin and net profit.
However, with it at an all time high I’m not sure today is the best time to buy it. I’d be happy to have it in my portfolio but at a better valued price.
Until it’s cheaper I would rather consider the rapid ASX growth shares in the free report below.
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