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Healius Ltd (ASX:HLS) Shares Surge 9% After Full-Year Results Amidst ASX 200 Decline

Published 22/08/2024, 12:57 am
© Reuters.  Healius Ltd (ASX:HLS) Shares Surge 9% After Full-Year Results Amidst ASX 200 Decline
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Healius Ltd (ASX:HLS), a prominent player in the pathology and imaging sector, is enjoying a notable boost in its share price today. While the S&P/ASX 200 Index (ASX: XJO) has dipped by 0.5%, Healius shares have surged by 8.8%, climbing to AU$1.60 from yesterday's close of AU$1.47.

The surge follows the release of Healius’ full-year results for the financial year ended 30 June 2024 (FY 2024), which has captivated investor interest despite some mixed financial metrics.

Healius reported a business-as-usual (BAU) revenue of AU$1.74 billion, reflecting a 6.1% increase from FY 2023. Despite this growth, underlying earnings before interest, taxes, depreciation, and amortisation (EBITDA) fell by 7.9% year-on-year to AU$346.6 million. Underlying earnings before interest and tax (EBIT) also dropped by 34% to AU$65.4 million.

A significant factor influencing these figures was the substantial decline in Covid-related revenues, which fell sharply from AU$63.5 million in FY 2023 to just AU$2.5 million in FY 2024. This sharp decline in Covid revenues resulted in a reduction of AU$30.4 million in EBIT.

Despite these challenges, Healius's performance in other areas showed resilience. The pathology segment saw BAU revenue growth of 4.7% in the second half of the financial year, reaching AU$1.27 billion. Healius Lumus Imaging reported a 5.7% increase in gross revenue to AU$519.0 million, with EBIT growing by 10.8% to AU$41.9 million. Additionally, Agilex Biolabs demonstrated strong performance, with revenue increasing by 20.8% to AU$39.5 million and EBITDA doubling to AU$8.9 million.

Healius did not declare a final dividend for FY 2024, marking a continuation of its last dividend payout in September 2022. As of 30 June, the company reported net debt of AU$360.7 million.

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