Australian Clinical Labs Ltd · ASX:ACL
Australian Clinical Labs — H1 2025 Earnings Presentation
27 slides from Australian Clinical Labs's earnings presentation, Feb 26, 2025
Slide 1: ACL 1H25 Financial Results
ASX Announcement Australian Clinical Labs Limited ABN 94 645 711 128 Registered Office: 1868-1892 Dandenong Road Clayton VIC 3168 Australia clinicallabs.com.au Wednesday, 26 February 2025 ACL 1H25 FINANCIAL RESULTS The following announcements to the market are attached: Appendix 4D 1H25 financial st
Slide 2: ACL FY25 First Half Results
ASX Announcement Australian Clinical Labs Limited ABN 94 645 711 128 Registered Office: 1868-1892 Dandenong Road Clayton VIC 3168 Australia clinicallabs.com.au Wednesday, 26 February 2025 ACL FY25 First Half Results – 9.5% Revenue Growth, 9.7%1 MBS Revenue Growth, delivers $27.3M in Underlying EBIT
Slide 3: Total Revenue of $369.2M
• Total Revenue of $369.2M, up $31.9M on 1H FY24 • ACL’s MBS revenue growth for 1H FY25 was 9.7% 2. This was ahead of the broader market3, with continual focus on reviewing portfolio margin • ACL continued to demonstrate efficient cash management with free cash flow before interest, tax and financin
Slide 4: ENDS
– ENDS – This announcement was authorised for release to ASX by the Board of Directors of ACL. For further information regarding this announcement, please contact: Company Secretary Eleanor Padman Company Secretary Email: epadman@padmanadvisory.com.au Phone: +61 (0) 422 002 918 About Australian Clin
Slide 5: FY25 First Half Results Presentation
FY25 First Half Results Presentation Melinda McGrath, CEO and Executive Director Matthew Cordingley, CFO 26 February 2025 0
Slide 6: Contents
Contents • Overview • 1H FY25 Financials Results • Industry Outlook & Growth Strategy • FY25 Guidance • Summary • Appendix 1
Slide 7: Overview
Overview Melinda McGrath, CEO and Executive Director 2
Slide 8: 1H FY25 Results – Highlights
1H FY25 Results – Highlights In 1H FY25, ACL achieved Revenue of $369.2M and Underlying EBIT of $27.3M in line with company expectations • In 1H FY25, ACL achieved: – Total Revenue of $369.2M, up $31.9M (+9.5%) on 1H FY24 – Underlying EBITDA1 of $95.1M, up 9% on 1H FY24 – Underlying EBIT1 of $27.3M
Slide 9: 1H FY25 Results – Operational & Strategic Review
1H FY25 Results – Operational & Strategic Review ACL remains focused on sustainable operational advancements creating margin improvement, while progressing strategic growth initiatives • ACL continues its operational efficiency program with continued improvements across key areas of lab operations,
Slide 10: 1H FY25 Results – ESG highlights
1H FY25 Results – ESG highlights Fourth year of execution of ACL’s ESG strategy continues to deliver strong performance across all areas of our ESG Mission Environmental Social Corporate Governance Carbon Emissions Injury reduction Board/management composition 1.2kg CO2 per episode down from 1.4kg i
Slide 11: ACL Board and Executive Changes
ACL Board and Executive Changes ACL welcomes new non-executive directors and executives Ms Sarah Butler (Non-Executive Director) Sarah has extensive experience in health, insurance, government, consumer and technology industries with a long career in strategy consulting with Booz & Company and subse
Slide 12: Financial Results Overview
Financial Results Overview Matthew Cordingley, CFO 7
Slide 13: 1H FY25 Profit and Loss
1H FY25 Profit and Loss ACL recorded Underlying EBITDA of $95.1M and Underlying EBIT of $27.3M • In 1H FY25, ACL generated $369.2M of Revenue, $95.1M of Underlying EBITDA, $27.3M of Underlying EBIT and $12.1M of Underlying NPAT • Revenue grew at 9.5% driven by volume growth compared to 1H FY24, with
Slide 14: 1H FY25 Cash flow
1H FY25 Cash flow ACL has robust liquidity and generated robust operating cash flows of $30.8M • Operating cash flow to Cash EBITDA (non-AASB 16) of 105% reflects continuation of strong cash management and working capital management • Cash outflow for Other financing and investing activities relates
Slide 15: 1H FY25 Balance Sheet
1H FY25 Balance Sheet ACL’s strong balance sheet with Net Debt (ex-lease liabilities) of $34.2M (0.5x of LTM Underlying Cash EBITDA (Non AASB 16)) allows material head room to continue our buy-back program and for future growth initiatives Comments • Cash balance of $20.8M as at 31 December 2024 • T
Slide 16: Industry Outlook & Growth Strategy
Industry Outlook & Growth Strategy Melinda McGrath, CEO and Executive Director 11
Slide 17: ACL’s strategic pillars
ACL’s strategic pillars ACL’s growth strategy is centred on six strategic pillars to drive expansion in its core community and hospital pathology market, entry into strategic adjacencies and improved operating efficiency 1. Disciplined network expansion 2. Indexation campaign 3. Growth of strategic
Slide 18: Market Growth
Market Growth Volumes continuing to recover post COVID-19, with GP attendances still lagging Pathology Episodes (ex COVID-19) #m, FY09 – FY25F COVID-19 11.8% FY25F • The pathology market continues to Shortfall materially lag historical trends FY09 - 19: +3.3% CAGR to Trend • Market volumes continue
Slide 19: FY25 Guidance
FY25 Guidance Melinda McGrath, CEO and Executive Director 14
Slide 20: FY25 Guidance
FY25 Guidance ACL reconfirms previously announced guidance • For FY25 ACL expects Revenue of $725M to $752M and Underlying EBIT of $65M to $73M based on the following: – 1H Underlying EBIT of $27.3M was in line with management expectations and was in line with the achievement of guidance of $65M to
Slide 21: Summary
Summary Melinda McGrath, CEO and Executive Director 16
Slide 22: Summary
Summary • In 1H FY25, ACL achieved Revenue of $369.2M and Underlying EBIT of $27.3M in-line with management’s expectations of 1H • The business continues to demonstrate efficient cash management with free cash flow before interest, tax and financing conversion from Underlying EBIT of 98% • During 1H
Slide 23: Appendix
Appendix AUSTRALIAN “Clinicalads nn
Slide 24: 1H FY25 indebtedness
1H FY25 indebtedness Conservative net leverage provides significant headroom and financial flexibility ACL well within covenant profiles with key terms of banking facilities: - Margin of 1.55% (when < 1.5x) - Net leverage covenant < 3.5x - Interest coverage ratio > 3.0x 19
Slide 25: Reconciliation between Reported & Underlying EBITDA, EBIT and NPAT
Reconciliation between Reported & Underlying EBITDA, EBIT and NPAT • Adjustments between reported and underlying reflect: • During FY24 a fire occurred at an external storage facility where the Group was temporarily storing some laboratory equipment. Net insurance claim proceeds have been recognised
Slide 26: Reconciliation AASB 16 to AASB 117
Reconciliation AASB 16 to AASB 117 21
Slide 27: Important notice and disclaimer
Important notice and disclaimer Summary information Certain figures, amounts, percentages, estimates, calculations of value and This Presentation contains summary information about Australian Clinical Labs fractions provided in this Presentation are subject to the effect of rounding. Limited (ACN 64
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