Sonic Healthcare posts 11% profit increase in first half
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The news: Pathology services provider Sonic Healthcare has reported an 11% increase in first-half net profit to $262 million.
The numbers: The result topped market estimates of $253 million, according to Visible Alpha data.
Revenue was 16.6% higher to $5.4 billion, driven by organic growth augmentation from acquisitions during the period.
The group declared an interim dividend of 45 cents per share, slight increase from 44 cents last year. Analysts had expected the payout to remain flat year on year.
The context: Sonic Healthcare CEO Jim Newcombe said the company remains on track to achieve its full-year earnings guidance.
While the group saw "improving" performance across "most" of its operations, Newcombe noted that low organic growth and restructuring costs impacted margins in the US.
Sonic is currently undergoing a review of US business, including a rationalisation of its anatomical pathology operations.
