Fisher Paykel Healthcare says new products should boost earnings in coming years, even if global growth is slowing.
The listed medical equipment manufacturer made $28.3 million in the six months to the end of September, compared with $16.9 million in the same period a year ago, when it was hit by one-off tax charges.
Its chief executive Mike Daniell says demand is improving, but the global economic slowdown has affected the pace of sales growth, particularly of its products to treat obstructive sleep apnea, or OSA.
He says the OSA market has slowed in its growth rate - historically it has been growing in the 15% range whereas now it's growing in the 6 to 8% range.
Mr Daniell says that's partly because people with sleep apnea can defer diagnosis and treatment for a period, although they shouldn't.
And while the writing is on the wall for deep healthcare cuts in the US, Mike Daniell says, so far, the company's been relatively sheltered.
He says the company's whole research and development programme is aimed at providing devices which improve outcomes for patients, improve efficiency of care, help reduce intensity of care and help to keep people out of hospital.
Mr Daniell says while Fisher Paykel's medical device may actually cost more, it helps to save money by reducing health system costs overall.
Fisher Paykel Healthcare spent almost $20 million on research and development in the first half of the year - 7% more than in the same period a year ago.
Mr Daniell says there are a number of products being developed, particularly masks to treat obstructive sleep apnea, which should drive earnings in the next financial year.
