The Fisher & Paykel Healthcare Corp Ltd (ASX: FPH) share price will be on watch today after it provided an update on its guidance for FY 2019.
What did Fisher & Paykel Healthcare announce?
This month there have been countless companies including Cochlear Limited (ASX: COH) and Flight Centre Travel Group Ltd (ASX: FLT) warning about the negative impacts the coronavirus outbreak is having on their businesses.
But one company that has experienced a surge in demand following the devastating outbreak of this virus is Fisher & Paykel Healthcare.
This morning it revealed that it has experienced better-than-expected sales in its Hospital product business following an increase in demand from China following the coronavirus outbreak.
Combined with higher than expected Homecare sales, this has led to the company upgrading its revenue and earnings guidance for the full year.
Guidance upgrade.
Management previously expected operating revenue to be approximately NZ$1.19 billion and net profit after tax to be approximately NZ$255 million to NZ$265 million for the 12 months ending March 31.
But this has now been lifted to revenue of approximately NZ$1.2 billion and net profit after tax in the range of approximately NZ$260 million to NZ$270 million.
Fisher & Paykel Healthcare's Managing Director and CEO, Lewis Gradon, explained: "We've seen better-than-expected sales in our Homecare product group combined with continued strong growth in our Hospital product group. This includes an increase in demand from China related to the COVID-19 coronavirus outbreak."
In addition to this, Mr Gradon advised that the company's supply chain should not be impacted greatly by the coronavirus as it does not have a manufacturing facility in China. And while some of its suppliers of raw materials are based in China, it doesn't expect any meaningful disruption.
Mr Gradon said: "At this stage, we do not anticipate any significant impact on supply to our existing customers. We will continue to assess this on an ongoing basis, particularly if the outbreak escalates or continues for a prolonged period."
