Sonic Healthcare Limited (SHL)
1H Year Results – Released 15/02/17
- Beat consensus forecasts for NPAT, revenue but missed on EBITDA
- Statutory NPAT of $2.48b reported which was slightly better than consensus estimates of $2.45B
- EBITDA of $413.8m was lower than consensus estimates of $416.7m
- Revenue of $2.48b reported was better than consensus estimates of $2.45b
- Interim dividend of 31 cps, 20% franked payable on 11 April
Operational Key Points
- Australian Pathology:
- 7% growth, 4% organic ahead of Medicare market data
- Modest earnings growth excluding APP acquisition
- New state of the art laboratory for Sulivan Nicolaides Pathology, Brisbane
- 3.3% organic revenue growth continuing growth momentum of recent years
- Ongoing strong growth at CPL, Sonic’s largest US lab based in Texas
- 6% organic revenue growth, well above market growth
- On track to achieve FY guidance of $876m EBITDA, usual seasonal earnings weighting to 2H
- Ongoing strong organic revenue growth of around 5% expected, underpinned by industry drivers and strong established brands
- Announced synergistic acquisitions and hospital JV’s to enhance earnings growth in FY18
- Ongoing pipeline of acquisition and JV opportunities
- Technology and automation, including GLP systems, boosting efficiencies
- Infrastructure investments in recent years creating capacity for future growth and efficiencies
- Geographic diversification provides growth opportunities and risk mitigation
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