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Sonic Healthcare Releases Upbeat FY16 Results

Sonic Healthcare Releases Upbeat FY16 Results
Growth in international revenue was a significant contributor to the results, accounting for 75% of the company’s statutory revenue.
Aug 17, 2016 By Ben Khouri Tags: SHL, Earnings

Healthcare company Sonic Healthcare (ASX:SHL) has released its earnings results for FY16. Supported by an increase in international expansion, the healthcare services firm has reported strong double-digit growth in revenue and earnings.

Sonic's Revenue Surpasses $5 Billion

For the financial year ending 30th June 2016, Sonic reported revenues of A$5.05billion, equating to 20% growth to the PCP. After accounting for non-recurring items, Sonic achieved 30% growth in NPAT, to A$451million. On an underlying basis, the group reported a 20% expansion in EBITDA, to A$876million.

Growth in international revenue was a significant contributor to the results, accounting for 75% of the company’s statutory revenue. On a constant currency basis (which accounts for currency fluctuations), Sonic achieved growth in almost all of its international ventures. European and US revenue grew 33% and 1.9%, to A$1.6billion and A$948million respectively, however New Zealand revenue contracted 23.5% for the period, to A$26million.

Sonic’s CEO, Dr Colin Goldschmidt has attributed the success to their determination in completing international acquisitions: “The acquisitions we completed early in the year, Medisupport in Switzerland and KLD in Belgium have both delivered as expected and have been smoothly integrated into the Sonic group. Our UK joint venture, Health Services Laboratories, continues to exceed expectations and is well positioned to gain further NHS outsourcing contracts.”

7.3% Dividend Growth

The board has declared a 30% franked dividend of A$0.44cents per share. This equates to a 7.3% increase to the PCP.

Outlook Appears Favourable

Sonic remains confident with its future outlook, with the company expecting ongoing earnings growth in FY17.
Investors have reacted quite positively to the report, with SHL up 5.4% (As at 10.48am AEDT), to $23.34.

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Ben Khouri Author: Ben Khouri Aug 17, 2016

Ben Khouri is a financial editor for Wise-Owl with a particular focus on the top ASX 300 companies. Having a vast background in economics and finance, Ben provides financial commentary & analysis as well as global market updates, which guide investors in devising investment strategies. Ben specialises in analysing economic data and global events from around the world and examines the impacts they have on the major equity markets.

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