• US announces 10% tariff on products manufactured in New Zealand
• Almost all Fisher & Paykel products imported from Mexico are USMCA compliant
• Company does not anticipate material impact on FY2025 net profit

Fisher & Paykel Healthcare Corporation Limited has announced that the United States has introduced new tariffs on products manufactured outside the US, including a 10% tariff on products manufactured in New Zealand. This comes after the US enacted a 25% tariff on products imported from Mexico that are not compliant with the US-Mexico-Canada Agreement (USMCA) in early March. However, Fisher & Paykel Healthcare states that almost all of its products imported into the US from Mexico are currently compliant with the USMCA. The company currently manufactures approximately 45% of its volume in Mexico and 55% in New Zealand, with around 43% of its revenue coming from the US in the first half of the 2025 financial year. Approximately 60% of the company's US volumes are supplied from Mexico, and 40% from New Zealand. The company does not anticipate a material impact from the US tariffs on its net profit after tax for the 2025 financial year, which ended 31 March 2025. However, for the 2026 financial year, the company's costs would likely increase due to the new tariffs, acknowledging the economic environment, global response to US tariffs and foreign currency movements may be fluid over this period. The company continues to expect to reach its gross margin target through its long-standing continuous improvement activities across the entire business, coupled with efficient growth into existing infrastructure, though the US tariffs may add to that timeframe. The company will provide an update on outlook for the 2026 financial year, as well as an updated estimate of the timeframe to return to its gross margin target, at its full year results at the end of May.

The company does not anticipate a material impact from the US tariffs on its net profit after tax for the 2025 financial year, which ended 31 March 2025. For the 2026 financial year, the company's costs would likely increase due to the new tariffs.

The company continues to expect to reach its gross margin target through its long-standing continuous improvement activities across the entire business, coupled with efficient growth into existing infrastructure, though the US tariffs may add to that timeframe. The company will provide an update on outlook for the 2026 financial year, as well as an updated estimate of the timeframe to return to its gross margin target, at its full year results at the end of May.