Overview of Pacific Smiles Group correction

Pacific Smiles Group Limited (ASX: $PSQ) has issued a correction to its Trading Update - EBITDA guidance confirmed announcement. The correction pertains to the reference of trading in the second half of FY24, as opposed to the previously stated second half of FY23. The updated version of the announcement has been attached to the release.

Executive commentary on trading performance and guidance

The trading update for the second half of FY24 reflects a tapering in trading compared to the first half, impacting year-on-year growth in patient fees. This softening is attributed to the weakening macroeconomic environment, which is believed to be temporarily depressing demand for dental services due to cost of living pressures impacting patients' spending decisions. Despite patient fees falling below full-year guidance expectations, management has actively managed operational efficiency and productivity to insulate earnings.

Summary of Pacific Smiles Group's FY24 guidance update

Pacific Smiles Group has updated its guidance for FY24, forecasting the underlying EBITDA to be towards the middle of the previous range of $26m to $28m. Patient fees are now expected to fall just below the bottom end of the previous guidance range of $293m to $297m, with a forecast between $291m and $292m. The company anticipates releasing the full-year results for FY24 in the last week of August 2024, subject to the timing and outcome of the Scheme of Arrangement with National Dental Care. The announcement contains forward-looking statements, emphasizing the inherent risks and subjective judgment involved in predicting future events.