New products would be released over the next few years.
``We intend these products, along with our consistent growth strategy, will support sustainable and profitable growth over the longer-term.''
FPH announced an operating profit of $302.7 million for the six months ended September, up 10% on the $275.9 million reported in the previous corresponding period.
The before tax profit rose 3% to $114.1 million and the reported profit was also up 4% to $81.3 million from $78.2million. Net cash from operating activities rose to $82.2million from $76.2million in the pcp. Revenue rose 8% to $458.4million.
The interim dividend rose 6% to 8.75c per share, representing 10% of operating revenue.
Forsyth Barr broker Lyn Howe said the profit was broadly in line with her forecasts and modestly ahead of the company's guidance.
FPH had narrowed its 2018 guidance for reported profit to between $185million to $190million, helped by favourable currency movements.
``We are not expecting to materially change our current expectations for full-year reported profit of $191million.''
FPH disclosed incremental litigation costs of $9.8million in the first half, reflecting a full six months of litigation versus one and a-half months in the first half last year, she said.
The figure was below expectations although costs could be lumpy and it was difficult to extrapolate to form a view on the near-term outlook.
The patent dispute with ResMed was a time consuming and costly exercise. However, early signs had been encouraging with recent decisions in FPH's favour, Ms Howe said.
In his comments, Mr Gradon said that operating revenue for the hospital product group, which included products used in respiratory, acute and surgical care, was up 11% to a record $262.5million.
Much of the growth was driven by the increasing adoption of Optiflow nasal high flow therapy. Products in the hospital group now made up 57% of the company's operating revenue.
The homecare product group's operating revenue was up 4% to $191.3million in the period.
The group includes products used in the treatment of obstructive sleep apnoea and respiratory support in the home.
The company's obstructive sleep apnoea masks (OSA) continued to perform well in particular, delivering 8% growth in constant currency.
``We have been very pleased with the response to our Brevida nasal pillows mask for treating OSA patients.''
Gross margin increased by 1.16% to 66%, mainly due to favourable product mix and increased production in Mexico, he said.
Construction of the new manufacturing in Tijuana, Mexico, was about to start and it was expected to be in operation by the middle of next year.
About 35% of FPH's production comes from Mexico. The rest is manufactured in New Zealand.
