Sonic Healthcare shares slide as HY profits crumble
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More news: Sonic Healthcare shares were down 7.8% to $29.22 at 12:30pm AEDT. The healthcare provider earlier reported a fall in net profit of 47% compared to a year earlier, after earnings were hit by a "dramatic reduction" in Covid-related revenue.
Sonic Healthcare profit drops 47% as Covid revenue fades
The news: Sonic Healthcare's half-year profit fell by nearly 50%, as earnings were hit by a "dramatic reduction" in Covid-related revenue.
The numbers: Sonic's net profit fell 47% to $202 million in the six months to December 2023 compared with the prior corresponding period. EBITDA dropped 20% year-on-year to $737 million, while total revenue rose 5% to $4.31 billion.
The Sydney-based company's results were significantly impacted by Covid-related revenue reducing 90% to $39 million.
Despite the decline, Sonic declared an interim dividend of 43 cents per share, up 2.4% on 1H23. The healthcare provider also said it was on track to achieve its full-year EBITDA guidance, though "more likely" towards the lower end of the $1.7 billion to $1.8 billion range.
The context: The global private medical laboratory and pathology service operator described the 2024 financial year as "one of transition" as the company returns to business as usual.
Despite revenue fading from its Covid PCR testing operations, the company said base business revenue was up 14% compared to the pre-pandemic FY20 first half, with its laboratory businesses in Australia, Germany and the UK enjoying particularly strong organic growth.
The source: ASX announcement
