Fisher & Paykel Healthcare (ASX: FPH) shares fell -5% as the market opened after providing a weak revenue guidance for FY22.
The company expects full-year operating revenue for FY22 to be in the range of $1.675bn to $1.7bn, down -13.7% to -15% compared to a year ago.
“Our second half hospital consumables revenue is currently tracking to be similar to the hospital consumables revenue that we reported in the first half of the 2022 financial year,” said CEO Lewis Gradon.
For context, earnings in the first-half of FY22 was relatively flat, total operating revenue was down -1% to $900m and net profit after tax fell -2% to $222m.
“This is consistent with reports of the increasing prevalence of the Omicron variant over the last two months and its associated lower respiratory intervention requirements, as well as a relatively mild flu season in the Northern Hemisphere,’ said Gradon.
The company said that sales for the Homecare product segment was tracking above first-half growth rates despite supply constraints of treatment hardware in the market. Though, this segment contributed just 24% of revenue in FY21.
Management flagged that freight rates have remained elevated and expected to impact the company’s long-term gross margin target of 65% by approximately 250 basis points.
This impact similar to what happened in FY21, where gross margins fell by 295 bps to 63%.
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