The Fisher & Paykel Healthcare Corp Ltd (ASX: FPH) share price is struggling from the open on Friday following a company update.
At the time of writing, the Fisher & Paykel share price is trading 6% down at $17.98 after it announced its FY23 guidance.
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Fisher & Paykel expects slow down in FY23
Detailing its forecasts for the coming 12 months, the healthcare giant said that it anticipates revenue of $670 million and net profit after tax (NPAT) of $85–$95 million.
This signifies an increase in revenue compared to 1H FY20's $570.9 million yet a decline in revenue compared to the prior comparable period, being 1H FY22 at $900 million.
CEO Lewis Gradon said the company had "sold approximately ten years' worth of hardware in two years" creating a high comparison in FY22 as well.
"This does not change the fundamentals of our business or our strategy," he added.
"Our Hospital sales teams are still focused on changing clinical practice and helping ensure the hardware our customers have purchased is used to benefit a broader range of patients requiring respiratory support."
Gross margin for the first half is also expected to land at 60% – 500 basis points below the company's long-term target of 65%.
Part of the contraction in gross profit is due to a shift in sales towards the lower margin consumables segment.
However, despite challenges, it expects that H2 FY23 revenue will be higher than the first half as hospitalisation rates normalize.
"The company is now targeting constant currency operating expense growth of approximately 10%
for the year," it added.
Never before in our history have we changed clinical practice with such a significant advantage.
Our customers already have our hardware, they already have clinical experience with its use, and
they already have access to a huge amount of clinical evidence. This gives us confidence that we
can continue to build on our proven 50-year track record and reach more patients with our
respiratory therapies.
In the past 12 months, the Fisher & Paykel share price is down 44%, and down 41% this year to date.
