ASX Health Stocks: Sonic slumps after H1 profits fall 47pc. CEO says don't worry, we're back to normal now

Sonic Healthcare’s shares dumped after profits decline by half
Singular Health retains ISO certificate

Sonic’s awful first half

Shares in Australia’s second biggest healthcare company, Sonic Healthcare (ASX:SHL), were dumped today after its H1 profits came in -47% lower.

Sonic is an internationally renowned healthcare provider with specialist operations in laboratory pathology, radiology, general practice medicine and corporate medical services.

The company sits second behind CSL (ASX:CSL) on the the ASX’s biggest healthcare stocks list.

According to its filing today, total revenue for the half came in at $4.3 billion, up 5% on the pcp.

However, half year bottom lines EBITDA and Net Profit sank.

EBITDA declined by -20% to $737m, while net profit tumbled by -47% to $202m.

Sonic says the decline in profit was due to the company returning to normal business from the Covid era revenue.

“2024 financial year is one of transition for Sonic Healthcare, as the impacts on our business of the COVID pandemic dissipate, and we return to normal business,” said Sonic CEO, Dr Colin Goldschmidt.

“Whilst our headline numbers for the half-year show significantly lower earnings versus the comparative period, this is the result of having 90% less COVID-related revenue in the current period.”

Sonic paid an interim dividend up 2.4% to 43 cents per share.

SHL’s shares were trading -8% lower this morning.

Singular retains ISO certificate

Medtech company, Singular Health Group (ASX:SHG), says it has been notified of the successful re-issuance of a ISO13485:2016 Certificate.

The re-issuance demonstrates Singular’s continued adherence to the best global standards for quality assurance and medical device development.

Retaining the certificate means the company is in compliance with regulatory and quality requirements of Health Canada, the Therapeutic Goods Administration (Australia), and USA’s Food and Drug Agency through the Medical Device Single Audit Program (MDSAP).

The approval was also given after a successful site verification and surveillance audit results of its Bibra Lake address in WA as a Medical Device Establishment.

The ISO13485 is the primary standard certificate for medical device development, and has been globally adopted by almost all leading medical device regulatory bodies as a prerequisite for the registration of Class II and higher medical devices.