Table of Contents
What changed
- Revenue rose 18.4% to $951.2m (17% constant currency), with Hospital up 21% to $591.4m and Homecare reaching a record $359.4m. Hospital's share of group revenue rose 1.5pp to 62.2%.
- Profit before tax grew 46.8% to $206.4m; NPAT grew 42.8% to $153.2m. The slightly slower NPAT growth simply reflects a higher effective tax rate of 25.8% (prior 23.7%), with no discontinued operations or below-the-line items disclosed.
- Operating cash flow jumped to $233.0m (prior $156.5m). With capex normalising from $275.5m to $55.1m, free cash flow swung from -$127.5m to +$169.4m.
- The balance sheet flipped to net cash: cash rose to $116.6m and gross borrowings fell to $102.3m (from $243.2m), implying roughly -$14.3m net debt versus $172.7m previously. Equity grew 10.2% to $1,929.8m.
- Interim dividend lifted 2.8% to 18.5cps, well below the pace of earnings growth.
What matters
- Capex cliff drives the cash story. The FCF swing is overwhelmingly capex-driven: capex fell from 34.3% of revenue to 5.8%. The underlying operating cash improvement is real but far smaller than the headline FCF delta implies. Investors should treat HY24 as an abnormal investment peak rather than HY25 as a new run-rate.
- Leverage direction is decisively strengthening. A $140.9m reduction in gross borrowings plus $46.1m more cash moves the group from modest net debt to net cash. That materially changes capital allocation optionality, even though the interim dividend lift was modest (payout vs NPAT eased to 70.6% from 97.3%).
- Hospital continues to out-grow the mix. Hospital revenue growth of 21% outpaced group, consistent with the stated strategic emphasis on new applications consumables. No segment result data was supplied, so margin contribution cannot be confirmed.
Expectations
No forward-work metric or quantitative FY25 guidance is provided in the supplied excerpts. Against FY24 shape, HY24 represented only 50.8% of full-year revenue but 42.9% of full-year NPAT, so the prior year was second-half weighted on earnings. Annualising HY25 revenue gives $1,902.4m, about 20% above FY24's $1,581.1m, suggesting the current run-rate is comfortably ahead of the FY24 base if the normal second-half skew holds. The release does not support a specific FY25 number and does not restate or amend any target.
Quality of result
Earnings quality looks reasonable but is not as clean as the headline implies.
- PBT growth of 46.8% is not distorted by unusual items; there are no disclosed non-recurring, impairment, or discontinued items.
- The cash result is flattered by the normalisation of capex after an unusually high HY24 investment period. Pre-lease FCF of $177.9m and FCF/NPAT of 110.5% should not be extrapolated without a view on the ongoing capex base.
- Working capital is mixed: receivable days lengthened to 48.5 (from 42.9) as trade debtors rose 34% versus revenue growth of 18.4%, while inventory days improved to 63.6 (from 81.6). Net operating working capital rose ~$37.0m, so the OCF uplift partly reflects inventory drawdown rather than pure trading.
- FX contributed a small translation tailwind (reported growth 18% vs constant-currency 17%), with a $5.1m FX headwind on cash.
Unresolved
- No gross margin, EBITDA, or segment profitability figures are provided, so operating leverage and Hospital vs Homecare margin mix cannot be assessed.
- The sustainable capex run-rate is unclear; HY24's $275.5m and HY25's $55.1m are both likely atypical, but no guided capex envelope is given.
- No FY25 revenue or earnings guidance, forward-work metric, or stated medium-term targets were disclosed in the supplied excerpts.
- The trajectory of receivable days warrants monitoring given debtors outpaced revenue growth.
- No customer, geographic, or product concentration disclosure was included.
This briefing cannot assess valuation, margin trajectory, or management's FY25 outlook because gross margin, EBITDA, NTA per share, and forward guidance were not supplied.
Key metrics
| Metric | HY25 | HY24 | Change |
|---|---|---|---|
| Revenue | $951.2m | $803.7m | +18.4% ↑ |
| Net profit after tax | $153.2m | $107.3m | +42.8% ↑ |
| Net cash inflow from operating activities | $233m | $156.5m | +48.9% ↑ |
| Interim dividend per share | 18.5c | 18.0c | +2.8% ↑ |
| Operating profit | $218.1m | $152.6m | +42.9% ↑ |
| Profit before tax | $206.4m | $140.6m | +46.8% ↑ |
| Cash and cash equivalents | $116.6m | $70.5m | +65.4% ↑ |
| Total assets | $2435.4m | $2389.8m | +1.9% ↑ |
Reference: annolyse.ai/briefings/fph-hy25
Segment breakdown
| Segment | Current revenue | Prior revenue | Current result | Mix shift |
|---|---|---|---|---|
| Hospital product group | $591.4m | $487.5m | — | +1.5pp |
| Homecare product group | $359.4m | $314.4m | — | -1.3pp |
Reference: annolyse.ai/briefings/fph-hy25
Analytical metrics
| Metric | HY25 | HY24 | Context |
|---|---|---|---|
| PBT growth | +46.8% | — | — |
| Effective tax rate | 25.8% | 23.7% | — |
| FCF pre-lease | $177.9m | −$119.0m | +$296.9m |
| FCF post-lease | $169.4m | −$127.5m | +$296.9m |
| FCF / NPAT | 110.5% | -118.8% | complementary conversion metric |
| Capex % revenue | 5.8% | 34.3% | — |
| Capex | $55.1m | −$275.5m | +$330.6m |
| Free cash flow | $169.4m | −$127.5m | +$296.9m |
| Debtor days | 48.5 | 42.9 | +5.7 days |
| Inventory days | 63.6 | 81.6 | -18.0 days |
| Operating working capital | $586.3m | $549.3m | +$37.0m absorbed |
| Trade debtors | $253.6m | $189.2m | +$64.4m |
| Net debt | −$14.3m | $172.7m | −$187.0m |
| Gross borrowings | $102.3m | $243.2m | −$140.9m |
| Payout ratio vs NPAT | 70.6% | — | — |
| Payout ratio vs FCF pre-lease | 60.8% | — | covered |
| ROE (annualised) | 16.6% | 12.2% | Strengthening |
| HY24 share of FY24 revenue | 50.8% | — | Other half was 49.2% |
| HY24 share of FY24 NPAT | 42.9% | — | Other half was 57.1% |
| Profit from continuing operations | $153.2m | $107.3m | +$45.9m |
Reference: annolyse.ai/briefings/fph-hy25
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.