ASX Health Stocks: Giant Sonic and small cap Probiotic roll out the record results
Health & Biotech
Health & Biotech
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The news flow on healthcare today revolves around earnings results.
Australia’s second biggest healthcare company, the $16 billion market cap Sonic Healthcare (ASX:SHL), reported a revenue for the full year of $9.34 billion, a 7% increase on last year.
Its bottom line net profit was $1.46 billion, an 11% increase on the pcp. This was a record profit for Sonic.
Sonic has played a major role in combating the COVID-19 pandemic during the year. Since the start of the pandemic, it has performed over 55 million COVID-19 PCR tests across seven countries of operation.
In addition to PCR tests, Sonic has also provided COVID-related antibody testing, genetic sequencing and vaccination services.
Concurrently, the company has also provided non-COVID essential medical diagnostic services for more than 100 million patients a year.
Sonic’s CEO, Dr Colin Goldschmidt, however said that it’s difficult to predict future performance from this segment.
“It remains difficult to predict future revenues from COVID-19 testing, however we do expect ongoing demand, coupled with seasonally weighted increased testing for other respiratory viruses,” he said.
Sonic will pay total dividends for the full year of $1.00, up 10% on the prior year.
Another healthcare giant to have released full year results today was EBOS (ASX:EBO).
The pharmaceutical distribution company saw its revenue jump 16.6% year on year to $10.7 billion, exceeding $10 billion for the first time.
EBOS said it continued to see strong performances from both its Healthcare and Animal Care segments, with Healthcare’s underlying EBIT up 24% and Animal Care’s EBIT up 15.3%.
During the year, EBOS has also continued to invest in its operational infrastructure across the group to support the growth in the business.
Five acquisitions were completed during the last 12 months, which includes further expansion of its Institutional Healthcare division.
The marquee acquisition for the year was of LifeHealthcare, which has helped to establish EBOS as one of the largest independent medical device distributors in Australia, New Zealand and Southeast Asia.
Final dividend declared was NZ 49.0 cents per share, bringing total dividends declared for the year to NZ 96.0 cents per share (up 8.5% YoY).
In the smaller end of town, Trajan (ASX:TRJ) continues to execute plans to diversify its business model, and implement successful counter measures to macro global events like COVID.
Key highlights from FY22 include net revenue of $107.6m, which is at the high end of guidance, and up 40.5% on the pcp.
Normalised EBITDA was $12.5m, up 26% on pcp.
For its FY23 guidance, Trajan has forecast revenue to come within the range of $150m-$160m, and normalised EBITDA between $21m and $25m.
Nutraceutical products specialist Probiotic (ASX:PBP) meanwhile reported record revenue of $182.3m, a +14% increase on its FY21 proforma, and above the $175m – $180m guidance.
Bottom line EBITDA was $32.8m, up +34% on FY21 proforma, and at the upper end of its $32m – $33m guidance.
Probiotic said its results were driven by strong organic growth, along with the partial return of cold & flu product sales that were suppressed during the pandemic.
The company is predicting further strong outlook ahead with a number of growth opportunities and industry tailwinds expected.
Probiotic will pay a fully franked final dividend of 3.5 cents per share, resulting in a full year dividend of 5.5 cents per share, up +10% on FY21.