Fisher & Paykel Earnings: Strong Demand for Consumables, Resilient Margins

We raise our fair value estimate for narrow-moat Fisher & Paykel Healthcare by 6% to NZD 25 per share, or AUD 23 at current exchange rates, due to the time value of money and a stronger result than we expected. Fiscal 2024 revenue rose 8% in constant-currency terms to NZD 1.7 billion, driven by strong consumables demand, and was 1% higher than our forecast. Underlying group EBIT rose 10%, constant-currency, to NZD 373 million, and was 4% above our forecast. In addition to slightly higher revenue, the result was driven by good cost control and better-than-expected gross margin expansion.