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Fisher and Paykel Healthcare says it “does not currently anticipate a material impact” from the tariffs announced by the United States on its net profit after tax for the 2025 financial year.
In recent days, new United States President Donald Trump announced a 25 per cent tariff would be imposed on products imported from Mexico and Canada, and a 10 per cent tariff would be imposed on products imported from China, with effect from today, February 4.
Fisher and Paykel Healthcare, based in East Tamaki, says it manufactures approximately 45 per cent of its volume in Mexico and about 55 per cent in New Zealand, and for the first half of the 2025 financial year approximately 43 per cent of the company’s revenue came from the US.
“Approximately 60 per cent of US volumes are supplied from the company’s Mexico manufacturing facilities,” it says.
“For the 2026 financial year, the company’s costs would likely increase due to the introduction of the new tariffs, acknowledging that the economic environment, global response to US tariffs and foreign currency movements may be fluid over this period.”
Fisher and Paykel Healthcare says it continues to expect to reach its gross margin target of 65 per cent through its “long-standing continuous improvement activities across the entire business, coupled with efficient growth into existing infrastructure”.
“The US tariffs may have added two to three years to that expectation.”
The company says it’s working through the complexities associated with the imposition of the tariffs and will provide an update on outlook for the 2026 financial year as well as an updated estimate of the timeframe to return to the gross margin target, at its full-year results at the end of May.
Fisher and Paykel Healthcare managing director and chief executive Lewis Gradon says: “The company takes a long-term view and will be working with global suppliers and US customers to provide solutions to best mitigate the impact of the tariffs on all parties.
“Fundamentally, our products and therapies are designed to improve care and outcomes for patients and to reduce the overall costs of providing healthcare.
“Across the business we’re continuing to make improvements that reduce costs or improve efficiencies,” says Graden.
“This proven combination is how we navigate all the various cost challenges that come our way over time.”
- Fisher and Paykel Healthcare is a leading designer, manufacturer and marketer of products and systems for use in acute and chronic respiratory care, surgery and the treatment of obstructive sleep apnea. The company’s products are sold in more than 120 countries worldwide.
