Sonic Healthcare shares flat on lower FY profit, earnings
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The news: Sonic Healthcare shares were flat during trading as the pathology services provider reported declines in full-year profit and earnings for the 2024 financial year.
The numbers: Sonic shares lifted 0.1% to $27.75 by 2pm AEST.
The group reported EBITDA of $1.6 billion in FY24, down 6% on last year and in line with reduced guidance flagged in May. Sonic had previously guided full-year EBITDA between $1.7 billion and $1.8 billion.
Net profit fell 25% year on year to $511 million as total revenue rose 10% to $8.97 billion.
Sonic declared a full-year dividend of $1.06 per share, up 2% on FY23.
The context: Sonic's CEO Colin Goldschmidt described the 2024 financial year as a "transition period" for the company, as it moved away from the impacts of Covid towards business as usual.
An 87% reduction in Covid-related revenue meant that headline earnings were significantly lower compared to FY23, he said, but the company is delivering "robust topline growth" both organically and through acquisitions.
What they said: "Inflationary pressures, particularly on labour costs, have impacted our results for FY24 and there will be some annualisation of these effects into the first part of FY25," Goldschmidt said.
"These impacts are expected to ease going forward, with headline inflation rates in Sonic's main markets now in the range of 1.3% to 3.8%."
The source: ASX announcement
