Integral Diagnostics (IDX) H2 2024 earnings summary

Executive summary

• Achieved revenue growth of 6.6% to AUD 469.7 million and operating EBITDA growth of 7.4% to AUD 91.5 million for FY24, with improved EBITDA margin to 19.5% from 19.3% year-over-year.

• Statutory net loss after tax of AUD 60.7 million due to a non-cash impairment in New Zealand and non-operating costs.

• Served over 1 million patients and performed more than 2.5 million exams, with high patient net promoter scores in both Australia and New Zealand.

• Announced a transformational proposed merger with Capitol Health Limited, expected to complete in Q4 CY24, aiming for significant scale, synergy benefits, and to create a leading ANZ diagnostic imaging group.

• Fully franked final dividend of 3.3 cents per share, with total FY24 dividends at 74.4% of operating NPAT.

Financial highlights

• Free cash flow up 5.5% to AUD 56 million; net debt to EBITDA reduced to 2.6x from 2.9x year-over-year.

• Operating diluted EPS up to 7.7 cents per share from 7.6.

• 2H FY24 saw EBITDA margin rise to 20.3% from 18.8% in 1H FY24, with operating NPAT up 45.5% sequentially.

• Organic revenue growth in Australia was 2.5% higher in H2 than H1; New Zealand H2 revenue was 7.9% higher than H1.

• Average fees per exam in Australia increased 7.7%, driven by Medicare indexation and higher-end modality mix; overall volumes declined 0.5%.

Outlook and guidance

• FY25 CapEx (excluding merger) expected between AUD 40–45 million, with historical trends suggesting spend at the lower end.

• Focus remains on organic growth, operational improvements, technology investment, and executing the merger with Capitol Health.

• July 2024 revenue growth in mid-teens, consistent with Medicare trends; August expected to be similar after adjusting for working days.

• Merger with Capitol Health to create a leading ANZ diagnostic imaging group, targeting AUD 10 million+ annual pre-tax cost synergies and double-digit pro forma FY25 EPS accretion.