Table of Contents
What changed
Revenue rose 27.8% to $2,021.0m and profit before tax grew 53.4% to $503.3m, with NPAT up 50.7% to $377.2m. Operating cash flow more than doubled to $548.6m (up 130.3% from $238.2m), while capex fell from $211.3m to $103.0m, dropping capex intensity from 13.4% to 5.1% of revenue. The resulting pre-lease free cash flow jumped to $445.6m from $26.9m. Cash balances rose to $264.5m and gross borrowings fell to $64.0m, leaving an implied net cash position of roughly $200.5m versus $37.7m a year earlier. The final dividend lifted to 24.0c from 23.0c (this is only the period-end component, not the full-year payout).
What matters
- Operating leverage is real. PBT grew roughly twice as fast as revenue (53.4% vs 27.8%), with the PBT-to-NPAT gap fully explained by a modest lift in the effective tax rate from 23.7% to 25.1% — there is no tax distortion flattering the headline.
- Cash generation has stepped up. Pre-lease FCF covered the dividend 3.2x versus barely at all in FY24 (payout-to-FCF fell from 494% to 31.5%), and ROE moved from 14.3% to 20.0%. Capex intensity more than halving suggests the prior capex cycle on capacity has crested.
- Balance sheet direction is clearly strengthening. Net cash of ~$200m, combined with inventory days falling from 84.4 to 61.9, points to the post-pandemic inventory build being normalised. The offset is that trade receivables rose 46.5% and receivable days extended by 6.0 days to 47.5, running ahead of revenue growth.
Expectations
No FY25 targets are disclosed in the supplied materials, so this briefing cannot benchmark against management guidance. On shape, HY25 delivered 47.1% of full-year revenue and 40.6% of full-year NPAT, implying an H2 lift to roughly $1,069.8m of revenue and $224.0m of NPAT — a clearly second-half-weighted profile that is consistent with prior commentary around Hospital new applications consumables momentum. The release does not contain forward-work or order-book disclosures, so run-rate into FY26 cannot be assessed from this extraction.
Quality of result
The result looks predominantly durable rather than timing-driven. The NPAT uplift is underwritten by cash: OCF of $548.6m sits well above NPAT of $377.2m, and FCF-to-NPAT of 118.1% compares to just 10.7% prior. The cash conversion inflection is partly structural (operating leverage, lower capex) and partly working-capital-assisted via the $22.9m inventory drawdown — inventory days fell by 22.5 days, which cannot repeat indefinitely. Working against this, receivable days extended 6.0 days and trade debtors grew 46.5% against 27.8% revenue growth, which is the one line warranting attention as a potential quality drag if it persists. There are no disclosed non-recurring items or non-GAAP adjustments in the supplied materials.
Unresolved
- Gross margin movement and segment mix (Hospital vs Homecare, new applications consumables) are not in the extraction, so the composition of the margin expansion cannot be decomposed here.
- Whether the capex step-down from $211.3m to $103.0m is a completed-project normalisation or a deferred spend that will rebound in FY26 is not addressed in the supplied text.
- The receivables build (+46.5%) relative to revenue (+27.8%) is not explained — geographic mix, customer concentration, or channel terms could each drive it, and none is disclosed.
- FX exposure is flagged as material by the nature of the business, but constant-currency FY25 figures and hedging impacts are not captured in this extraction.
This briefing cannot assess valuation, management guidance for FY26, segment-level profitability, or gross margin trajectory, none of which are present in the supplied data.
Key metrics
| Metric | FY25 | FY24 | Change |
|---|---|---|---|
| Revenue | $2021m | $1581.1m | +27.8% ↑ |
| Net profit after tax | $377.2m | $250.3m | +50.7% ↑ |
| Net cash inflow from operating activities | $548.6m | $238.2m | +130.3% ↑ |
| Final dividend per share | 24.0c | 23.0c | +4.3% ↑ |
| Operating profit | $509.6m | $332.2m | +53.4% ↑ |
| Profit before tax | $503.3m | $328m | +53.4% ↑ |
| Cash and cash equivalents | $264.5m | $121m | +118.6% ↑ |
| Total assets | $2550.8m | $2204.5m | +15.7% ↑ |
Reference: annolyse.ai/briefings/fph-fy25
Analytical metrics
| Metric | FY25 | FY24 | Context |
|---|---|---|---|
| PBT growth | +53.4% | — | — |
| Effective tax rate | 25.1% | 23.7% | — |
| FCF pre-lease | $445.6m | $26.9m | +$418.7m |
| FCF / NPAT | 118.1% | 10.7% | complementary conversion metric |
| Capex % revenue | 5.1% | 13.4% | — |
| Capex | $103.0m | $211.3m | −$108.3m |
| Debtor days | 47.5 | 41.5 | +6.0 days |
| Inventory days | 61.9 | 84.4 | -22.5 days |
| Operating working capital | $606.0m | $545.4m | +$60.6m absorbed |
| Trade debtors | $263.1m | $179.6m | +$83.5m |
| Net debt | −$200.5m | −$37.7m | −$162.8m |
| Gross borrowings | $64.0m | $83.3m | −$19.3m |
| Payout ratio vs NPAT | 37.3% | — | — |
| Payout ratio vs FCF pre-lease | 31.5% | — | covered |
| ROE (annualised) | 20.0% | 14.3% | Strengthening |
| HY25 share of FY25 revenue | 47.1% | — | Other half was 52.9% |
| HY25 share of FY25 NPAT | 40.6% | — | Other half was 59.4% |
| Profit from continuing operations | $377.2m | — | — |
Reference: annolyse.ai/briefings/fph-fy25
This analysis was generated using Annolyse, an AI-powered tool that analyses NZX company announcements. The analysis is based on available company filings and standard Annolyse calculations. This is general information only and does not constitute financial advice. The analysis may contain errors. Always read the original company filings and consult a licensed financial adviser before making investment decisions.