Healius 1H24 Financial Results Overview

Healius Limited (ASX: $HLS) has released its financial half year results for the period ended 31 December 2023. The company reported a 4.9% increase in Group BAU revenue to $847.4 million, with underlying EBIT of $15.7 million, in line with previous guidance. The results were impacted by a 97% reduction in Covid testing revenue compared to the same period in 2023, resulting in EBIT of $24.0 million. Healius also announced a non-cash impairment charge to goodwill of $603.2 million and reported a net debt of $327.0 million as of 31 December 2023.

Executive Commentary on 1H24 Results and Pathology Reset Program

Chief Executive Officer and Managing Director Maxine Jaquet emphasized the company's response to softening volume growth and inflationary cost challenges with an accelerated plan to reshape the business. The Pathology Reset Program comprises three phases aimed at optimizing costs, restructuring the laboratory network, and implementing the H27 Plan to drive efficiency gains. Jaquet highlighted the focus on delivering a fundamental step-change in the cost structure and operations of the Pathology business to reposition it for sustainable growth. Additionally, Healius is advocating for indexation in the Pathology sector, essential for managing the health budget effectively and ensuring early disease detection and treatment.

Summary of 1H24 Results and Outlook

Healius reported a 4.9% increase in Group BAU revenue and underlying EBIT of $15.7 million for the 1H24, in line with guidance. The company outlined the Pathology Reset Program to address volume and cost challenges, aiming to reshape the business for future growth. Despite the non-cash impairment charge to goodwill of $603.2 million, Healius remains focused on driving growth and earnings in Imaging and resetting the operating model and cost base for Pathology. The company revised its outlook for FY 2024, expecting underlying EBITDA of $359 million - $369 million and EBIT of $70 million - $80 million. Healius will hold an analyst and investor briefing to discuss the results and outlook further.