Ramsay Health Care expects to miss FY24 profit and capex forecasts
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The news: Ramsay Health Care said it expects to miss its profit and capital expenditure forecasts for the 2024 financial year, after impairments and writedowns hit Australia's largest private hospital operator.
The numbers: Ramsay said net profit after tax (NPAT) is expected to be in the range of $884 million to $889 million for FY24, including after-tax cash profit on the sale of its joint venture business Ramsay Sime Darby of $618 million.
Full-year NPAT from continuing operations is expected to be between $265 million to $275 million, down from $278.2 million in the previous corresponding period.
Ramsay said excluding the impact of non-recurring items, NPAT from continuing operations will be between $294 million and $299 million.
The group's greenfield and brownfield capital expenditure in the Australian region totalled $155 million for the year, below its guided $210 million to $260 million range. Total group capital expenditure for the 12-month period was $740 million, lower than the expected $800 million to $1 billion range.
The context: Ramsay said the profit hit was a result of non-cash impairments and accelerated writedowns against the book value of underperforming assets in its European private care business Ramsay Santé, as well as its UK operations, which totalled $24.5 million after tax.
Ramsay shares fell last week after the company announced that its long-serving CEO Craig McNally will retire next year, with Woolworths supermarket boss Natalie Davis named as his successor.
The source: ASX announcement
