Ramsay Health Care shares rise on FY25 outlook
Make us a preferred source
Make us a preferred source on Google
More news: Shares in Ramsay Health Care lifted in early trading on the ASX after the private hospital operator said it has seen a positive start to the new financial year.
Ramsay shares were up 1.2% to $38.47 by 10:45am AEDT, having shed more than 25% since January.
Ramsay Health Care says positive start to FY25, growth rate to be lower
The news: Australia's largest private hospital operator Ramsay Health Care says it has seen a positive start to FY25 but the growth rate is expected to be lower than the last financial year.
The numbers: Ramsay said it expects net profit growth in FY25, with the dividend payout ratio likely to be 60% to 70% of net profit after tax and minority interests.
FY25 net interest expense at its Europe business Ramsay Santé is forecast to be $590 million to $620 million following refinancing.
The context: Ramsay said activity trends year-to-date have been consistent with FY24, with surgical, medical and rehab growth above the year-ago level, while maternity and mental health activity below.
Earnings are likely to be driven by activity growth in all regions, albeit at a lower rate than in FY24.
Ramsay UK has seen volume growth but the rate of growth is expected to slow compared to FY24, while Elysium Healthcare expects top line growth in FY25 driven by a 6% to 7% increase in average available beds.
The Ramsay Santé business reported an 8.6% increase in revenue for the first quarter of FY25 supported by activity growth, higher tariffs and the recent acquisition of primary healthcare business Cosem, the company said.
The source: ASX announcement
