Fisher & Paykel Healthcare Corporation Limited

Welcome to Fisher and Paykel Healthcare's results conference call. My name is Taryn and I'll be your operator for today's call. At this time, everyone except the guest speakers will be in listen-only mode. Later, we'll conduct a question and answer session. We ask for your assistance in keeping the call to a maximum of one hour. If assistance is required at any time, please press the star button followed by zero on your phone and wait for a coordinator. If you require further assistance, you should redial into the call. Please note this conference call is being recorded. I would now like to turn the call over to Marcus Driller, VP Corporate.

Thank you, Taryn. Good morning, everyone, and welcome to the conference call for Fisher & Paykel Healthcare's first half results for the 2025 financial year. On the call today are Louis Graydon, our Managing Director and Chief Executive Officer, Lyndall York, Chief Financial Officer, and Andrew Somerville, our VP of Products and Technology. Lewis and Lyndall will first provide an overview of the results, and then we'll move on to questions. We'll be discussing our results for the six months ended 30 September 2024. Earlier today, we provided our 2025 interim report, including financial statements and commentary on our results to the NZX and ASX. These disclosures can be accessed on our website at fphcare.com forward slash investor. With that, I'd now like to turn the call over to Lewis.

Okay, thanks Marcus and good morning to everyone. I'm going to be referring to the investor presentation pack that we released to the NZX and the ASX today throughout. So let's start on page three with a recap of some of the highlights for our first half. We released our 950 system in the United States in April, and this coincided with the US launch of Evo III as well. Both these additions have added to the momentum in our hospital business, and our new OptiFlow Direct cannula is now available in most major markets, and the evidence continues to build regarding the benefit that this interface provides patients. In home care, we began selling our Nova Micro mask into New Zealand and Canada during the first half, and we launched this into the US just a few weeks ago. This follows hard on the heels of F&P Solo, which has been receiving positive feedback since its launch. Now on the infrastructure front, our manufacturing site in Guangzhou is now operational following receipt of regulatory clearance. So now let's turn to page four. Operating revenue for the half was $951 million, up 18% on the prior period, so that's 17% in constant currency. Net profit after tax was $153 million, up 43% on the prior period, or 51% in constant currency. I'm going to hand over to Lyndall shortly for a more detailed run through the financials. But first, let's go to the hospital product group. That's on page six. Operating revenue was $591 million, up 21% year on year, and that's in both reported and constant currency. New applications consumables was up 25% or 24% constant currency. And we've noted three key drivers for this there. First, the primary driver, our ongoing efforts to change clinical practice. Secondly, good response to the new product introductions around the world. And thirdly, we do see indications that a relatively high hospital census during the half contributed as well. Hospitals seem to be returning to a more normalised capacity in staffing levels. And we think possibly seasonal hospitalisations in the northern hemisphere from FY24 last year may have persisted into the start of our first half. And this contribution has been strong across the whole portfolio of therapies. OptiFlow for respiratory support has benefited from those three drivers I just mentioned. Growth in OptiFlow for anaesthesia remains robust off that relatively low base. And our non-invasive consumables continue to perform well as well. And then outside of new applications, it was good to see strong revenue growth for the consumables used in invasive ventilation as well. Hospital hardware revenue growth of 25% in constant currency is also a positive signal for us. We think pointing to continued progress and changing clinical practice. So let's turn now to page 8. Home care operating revenue was $359 million. That's up 14% on our first half last year, or 13% in constant currency. OSA mask growth was 16%, 14% and in constant currency. And as I mentioned at the start of the call, we've been rolling out Solo and Nova Micro across more markets. Both masks have been met by a strong reception and our war of full OSA mask also continues to perform strongly and that was another key contributor during the half. So while today is mostly talking about our financial results for the six-month period, I do just want to take a quick minute to circle back around to the longer term focus and aspirations. So in the short term, and for us we're generally thinking five years or so as short term, we see strong growth opportunities with OptiFlow, and we see that in both general respiratory and anesthesia patients. In that five to 15 year timeframe, we continue to invest in developing the home respiratory support opportunity. And then 15 year plus, we're building out our surgical technologies products. So I'll pause here and hand over to our CFO, Lyndall York, for a closer look at the financial performance in the first half, and then I'll come back to talk about guidance after that. So over to you, Lyndall.