Sonic Healthcare Limited · ASX:SHL
Sonic Healthcare — H1 FY2025 Earnings Presentation
19 slides from Sonic Healthcare's earnings presentation, Feb 20, 2025
Slide 1: CEO Presentation – Half Year Results to 31 December 2024
20 February 2025 The Manager – Listings Australian Securities Exchange Limited Exchange Centre 20 Bridge Street SYDNEY NSW 2000 Via electronic lodgement Dear Sir / Madam CEO PRESENTATION – HALF YEAR RESULTS TO 31 DECEMBER 2024 At 10:00am AEST today, Dr Colin Goldschmidt, Chief Executive Officer, wil
Slide 2: Financial and Operational Review
Financial and Operational Review Half-year ended 31 December 2024 Dr Colin Goldschmidt CEO, Sonic Healthcare 20 February 2025
Slide 3: Forward-looking Statements
Forward-looking Statements This presentation may include forward-looking statements about our financial results, guidance and business prospects that may involve risks and uncertainties, many of which are outside the control of Sonic Healthcare. Readers are cautioned not to place undue reliance on f
Slide 4: Headlines
Headlines A$M H1 FY 2025 H1 FY 2024 Change (Statutory) Revenue 4,669 4,306 8% EBITDA 827 737 12% Net profit 237 202 17% Cash generated from operations 620 452 37% Earnings per share (A$ cents) 49.2 42.6 15% On track to achieve full-year earnings guidance Strong organic revenue growth 6.1% EBIT
Slide 5: FY 2025 Guidance Maintained
FY 2025 Guidance Maintained Guidance (issued August 2024) EBITDA A$1.70 – 1.75 billion (constant currency) Guidance reflects up to ~10% EBITDA growth on FY 2024 (excluding gain from sale of West Division, USA) Depreciation expense (including on leased assets) as a percentage of revenue expec
Slide 6: Interim Dividend
Interim Dividend Annual Dividend History A$ FY 2025 FY 2024 Growth $1.10 Interim Dividend $0.44 $0.43 2.3% $1.00 $0.90 $0.80 $0.70 Progressive dividend strategy maintained $0.60 FY 2025 interim dividend unfranked A$ $0.50 Record Date 6 March 2025 $0.40 Payment Date 20 March 2025 $0.30 $0.20
Slide 7: Capital Management
Capital Management 31 December 30 June Debt Cover History 2024 2024 3.5 Net interest-bearing debt A$M 2,674 2,349 3.0 Equity A$M 8,337 8,075 2.5 Debt cover X 2.0 1.9 2.0 Ratio (X) Gearing ratio % 24.0 22.3 1.5 Interest cover X 10.5 12.0 Pre-pandemic average 1.0 0.5 Debt and equity movements impact
Slide 8: H1 FY 2025 Revenue Split
H1 FY 2025 Revenue Split SCS/Other A$225M 5% NZ A$15M Radiology A$484M 10% Australia Belgium A$1,034M A$71M 22% 2% UK A$361M Total Revenue A$4,669 million (including A$12 8% million interest) SCS / Other = Sonic Clinical Services (IPN Medical Centres, Sonic HealthPlus, other clinical Switzerland USA
Slide 9: Australian Pathology
Australian Pathology Organic revenue growth 9% Operations Revenue growth and ongoing cost control driving earnings growth and margin expansion Labour cost tightly controlled despite strong test volume and revenue growth Growth of genetic testing particularly robust, driven by new tests and
Slide 10: USA
USA Revenue Growth (2)% (statutory) – due to sale of West Division in H2 FY 2024 Organic growth 2% (constant currency) Operations Dermatopathology growing strongly, supported by rollout of PathologyWatch digital pathology platform Lower than expected organic growth in other anatomical pa
Slide 11: Germany
Germany Revenue Growth 12% (statutory) Organic growth 7% (constant currency) Operations Strong organic growth and margin expansion supported by leading position in specialty testing, genetics, microbiome sequencing and molecular pathology Ongoing focus on synergy capture from recent acqu
Slide 12: Germany: Acquisition of LADR Laboratory Group
Germany Acquisition of LADR Laboratory Group Transaction announced 9 December 2024, to complete 1 July 2025 Major growth milestone for Sonic´s 20-year presence in Germany, integrating one of the other “Top 5” national groups into Sonic Healthcare Germany CY 2024 annual revenue ~€370 million (~
Slide 13: Switzerland
Switzerland Revenue Growth 28% (statutory) – including recent acquisitions Organic growth 6% (constant currency) Operations Sonic Suisse national management and operating structure completed following acquisitions of Synlab Suisse, Dr Risch Group and Pathologie Enge Synlab Suisse and Dr
Slide 14: UK
UK Revenue Growth 10% (statutory) Organic growth 8% (constant currency) Operations Hertfordshire and West Essex (HWE) NHS 15-year outsource contract to commence 1 March 2025 Fitout of new hub lab in Watford commenced to service HWE and create capacity for growth Expansion of anatomical
Slide 15: Belgium
Belgium Revenue Growth (3)% (statutory) Organic growth (1)% (constant currency), impacted by net negative effect of fee cut and indexation increase (both 1 January 2024) Operations Underlying ongoing organic growth augmented by +3% indexation of national fee Belgium schedule, effective 1 J
Slide 16: Radiology
Radiology Revenue and earnings Organic revenue growth 12% (including Medicare fee indexation of 3.5% from 1 July 2024) EBITDA growth 13% Radiology Margin expansion 20 basis points A$484M 10% Operations Benefiting from ongoing trend towards higher value modalities 2 greenfield sites ope
Slide 17: Sonic Clinical Services (SCS)
Sonic Clinical Services (SCS) Revenue and earnings Organic revenue growth 2% SCS/Other A$225M Earnings growth flat 5% Operations Challenging primary care market conditions relating to ongoing shortage of general practitioners Australian Defence Force pre-recruitment medical assessment co
Slide 18: Earnings Growth Beyond FY 2025
Earnings Growth Beyond FY 2025 Expect ongoing strong organic revenue growth driven by market leading brands and Medical Leadership culture Operational leverage to continue achieving margin expansion in setting of tight cost control Realisation of majority of synergies from acquisitions made in
Slide 19: Thank you
Sy SONIC SY HEALTHCARE Thank you