Fisher & Paykel Healthcare (FPH) Trading update summary

Impact of new US tariffs

• US to impose 25% tariff on imports from Mexico and Canada, 10% on imports from China, effective 4 February 2025.

• Approximately 60% of US volumes are supplied from Mexico, with 43% of revenue from the US in H1 2025.

• No material impact on net profit after tax expected for FY2025.

• Costs likely to increase in FY2026 due to tariffs, with potential for fluid economic and currency conditions.

Gross margin and operational outlook

• Gross margin target of 65% remains, but tariffs may delay achievement by two to three years.

• Continuous improvement and efficient growth strategies are ongoing to offset cost pressures.

• Update on FY2026 outlook and gross margin timeline to be provided at full year results in May.

Management response and mitigation

• Management is engaging with global suppliers and US customers to mitigate tariff impacts.

• Focus remains on improving patient care and reducing healthcare costs through product innovation.

• Ongoing cost reduction and efficiency improvements are key to navigating cost challenges.