Green Cross Health Ltd · NZX:GXH
Green Cross Health — H1 2020 Earnings Presentation
20 slides from Green Cross Health's earnings presentation, Nov 26, 2019
Slide 1: Half Year Results Presentation
Half Year Results Presentation 26 November 2019 GXH Half Year Results Presentation 26 November 2019 Pg Pg11
Slide 2: Interim Result - Financial Highlights
Interim Result - Financial Highlights Revenue Pharmacy $275.4m -2.5% Same Store Sales +0.4% EBITDA Medical $27.0m1 +46.7% Same Centre +6.4% Revenue Net Profit After Tax $7.0m2 -14.1% Consistent 3.5 cps Interim Dividend (attributable to shareholders) Note: 1 EBITDA before IFRS16 application (Accounti
Slide 3: Our Purpose
Our Purpose Working together to support healthier communities. We are passionately committed to the health and wellness of New Zealand, and to providing the best support, care and advice to our communities. This is our promise. GXH Half Year Results Presentation 26 November 2019 Pg 3
Slide 4: Who we are
Who we are GXH Half Year Results Presentation 26 November 2019 Pg 4
Slide 5: Pharmacy Division
Pharmacy Division New Zealand’s largest network of health retailers: supporting easy access to quality health care GXH Half Year Results Presentation 26 November 2019 Pg 5
Slide 6: Pharmacy Performance
Pharmacy Performance Pharmacy Operating Revenue Pharmacy Operating Profit $m $m 180 16 14.5 13.9 170 13.2 12.2 166 12 162 158 8 4 130 0 1H17 1H18 1H19 1H20 1H17 1H18 1H19 1H20 IFRS 16 Adjustment • Revenue down 4.5% at $162m, following prior period store closures as part of our ongoing portfolio revi
Slide 7: Pharmacy Future Focus
Pharmacy Future Focus Retail and Health Customer Engagement Network Scale Financial Returns Focus on core retail Optimise digital health and retail Continue to grow the Reshape to fit new disciplines communications channels with franchise network environment customers Grow exclusive product Optimise
Slide 8: Medical Division
Medical Division Growth, leadership and sustainable models of care GXH Half Year Results Presentation 26 November 2019 Pg 8
Slide 9: Medical Performance
Medical Performance Medical Operating Revenue Medical Operating Profit $m $m 40 38 4 3.8 34 30 3 25 25 2.0 20 2 1.4 1.5 10 1 0 0 1H17 1H18 1H19 1H20 1H17 1H18 1H19 1H20 IFRS 16 adjustment • Revenue up 10.9% to $38.0m • Operating Profit up 87.1% to $3.8m • Operating Profit margin increased from 5.8%
Slide 10: Medical Future Focus
Medical Future Focus Network Scale Customer Engagement Financial Returns Network and patient number Deploy digital technology to Continuous improvement in growth through targeted increase efficiency and enhance operational efficiency and scale acquisition and market delivery of high quality patient
Slide 11: Community Health Division
Community Health Division Delivering sustainable services to maintain and support clients’ independence within their own home GXH Half Year Results Presentation 26 November 2019 Pg 11
Slide 12: Community Health Performance
Community Health Performance Community Health Operating Revenue Community Health Operating Profit $m $m 100 1.5 1.3 78 75 1.2 80 1.1 68 1 60 55 40 0.5 20 0 0 1H17 1H18 1H19 1H20 -0.1 1H17 1H18 1H19 1H20 • Revenue down 4.0% to $74.9m -0.5 IFRS 16 adjustment • Exit of two unprofitable contracts. One r
Slide 13: Community Health Future Focus
Community Health Future Focus Service Offering Digital Communication Financial Returns Focus on higher clinical needs Harness technology to enhance Continue cost reduction segments workforce efficiency and client initiatives outcomes Expand geographic coverage of Negotiate sustainable funding for Co
Slide 14: Group Financial Result
Group Financial Result 6 months ending 30 September 2019 GXH Half Year Results Presentation 26 November 2019 Pg 14
Slide 15: Interim Result - Group Revenue and Profit
Interim Result - Group Revenue and Profit GXH Operating Revenue GXH Operating Profit $m $m 300 20 17.6 282 16.5 16.0 275 14.9 15 259 250 10 238 5 200 0 1H17 1H18 1H19 1H20 1H17 1H18 1H19 1H20 IFRS 16 Adjustment • Revenue of $275m down 2.5%, following exit of two unprofitable contracts in Community H
Slide 16: Net Profit After Tax (attributable to shareholders)
Net Profit After Tax (attributable to shareholders) GXH Net Profit after Tax Attributable to Shareholders $m 12 10.5 10 8.8 8.1 7.9 8 6 7.0 4 2 0 1H17 1H18 1H19 1H20 IFRS Series2 16 adjustment • NPAT attributable to shareholders of $7.0m, down 14.1% • NPAT attributable to shareholders of $7.9m befor
Slide 17: Operating Cash / Investments
Operating Cash / Investments GXH Operating Cash Flow $m 25 22.1 • Operating Cash of $22.1m ($13.1m before the application of IFRS 16) 20 17.3 Enabling investment ($5.5m) in: – Waiuku Medical Pharmacy (increased holding) 15 – Centre City Pharmacy Dunedin (increased holding) – Life Pharmacy in Westfie
Slide 18: Net Debt / Debt Capacity
Net Debt / Debt Capacity Net Debt (Borrowings Less Cash) $m 0 • 27% improvement in Net Debt to $32.2m 1H17 1H18 1H19 1H20 -5 • Debt facilities extended with BNZ for a further 3 -10 years from end of August 2019 -15 1 • $41m of headroom on debt facilities to support -20 future investment -25 • Financ
Slide 19: Earnings Per Share / Dividends
Earnings Per Share / Dividends Cps Earnings Per Share 10 • EPS at 4.89 cps (5.52 cps before the application of IFRS 16) 8 • Interim Dividend consistent @ 3.5 cps 7.63 • Gross Dividend Yield ~8.5% 6.25 6 5.69 5.52 4.89 4 2 0 1H17 1H18 1H19 1H20 IFRS 16 adjustment GXH Half Year Results Presentation 26
Slide 20: Disclaimer
Disclaimer The information in this presentation was prepared by Green Cross Health Limited (GXH) with due care and attention. However, the information is supplied in summary form and is therefore not necessarily complete, and no representation is made as to the accuracy, completeness or reliability