Green Cross Health (GXH) H2 2024 earnings summary

Executive summary

• Group revenue rose 2% to $503.9m from continuing operations, while operating profit (EBIT) fell 7% to $31.8m and net profit after tax attributable to shareholders dropped 20% to $12.0m compared to FY23.

• The sale of the Community Health division in February 2023 narrowed the Group's focus to pharmacy and medical services, supporting a strategy of organic and acquisitive growth.

• Pharmacy division saw 7% growth in initial prescriptions for same stores and a 5% increase in vaccinations administered; Medical division expanded to 66 centres with enrolled patients up 9% to 423,000.

Financial highlights

• Operating revenue from continuing operations reached $503.9m, up 2% year-over-year; operating profit (EBIT) was $31.8m, down 7%.

• Net profit after tax attributable to shareholders was $12.0m, a 20% decrease year-over-year.

• Net assets declined 18% to $166.6m; cash and cash equivalents at year-end were $23.4m, down from $58.2m.

• Final dividend of 2.0cps declared, bringing total FY24 dividends to 4.5cps.

• Discontinued operations (Community Health division) resulted in a $276k loss adjustment in FY24.

Outlook and guidance

• Macro-economic challenges such as workforce shortages, inflation, and reduced consumer spending are expected to persist.

• Focus areas include improving labour efficiency, cost management, technology adoption, and expanding service offerings.

• The company urges government action on primary healthcare funding to maintain service accessibility.