Sonic Healthcare (ASX: $SHL) H1 FY2024 financial results

Sonic Healthcare Limited (ASX: $SHL) has reported its financial results for the half-year ended 31 December 2023. The company achieved a revenue of A$4,306 million, with EBITDA at A$737 million, in line with the guidance provided at the 2023 AGM. The net profit stood at A$202 million. Sonic Healthcare remains on track to achieve its full-year EBITDA guidance provided in August 2023, with a more likely outcome towards the lower end of the guidance range. The company experienced a significant reduction in COVID-related revenues, impacting the comparison with H1 FY2023. However, it achieved a strong organic base business revenue growth of 6% versus H1 FY2023, excluding COVID testing. Sonic Healthcare's cost reduction programs are well advanced, and recent acquisitions and contract wins have secured approximately A$500 million of new annual revenue. The company is also considering further acquisition and contract opportunities. Additionally, Sonic Healthcare has maintained its progressive dividend policy, with a 2.4% increase to 43 cents for the FY2024 Interim Dividend.

Executive commentary on H1 FY2024 results

The commentary on the figures above highlights the impact of the reduction in COVID-related revenues on the company's performance. Despite the challenges, Sonic Healthcare achieved strong organic base business revenue growth and is making significant progress in its cost reduction programs. The company's recent acquisitions and contract wins have contributed to securing new annual revenue, and Sonic Healthcare is actively exploring additional opportunities in this regard. The maintenance of the progressive dividend policy reflects the company's commitment to delivering value to its shareholders.

Summary of H1 FY2024 results and outlook

Sonic Healthcare's H1 FY2024 results demonstrate resilience in the face of reduced COVID-related revenues, with strong organic base business revenue growth and well-advanced cost reduction programs. The company remains on track to achieve its full-year EBITDA guidance, albeit towards the lower end of the range. With recent acquisitions and contract wins securing new annual revenue, Sonic Healthcare is actively pursuing further opportunities in this area. The maintenance of the progressive dividend policy reflects the company's confidence in its financial position and future prospects. Looking ahead, Sonic Healthcare aims to continue its growth trajectory and capitalize on potential acquisition and contract opportunities to drive future earnings.