Pacific Smiles Group (ASX: $PSQ) has released its financial results for the 6 months ended 31 December 2023, reporting a significant increase in utilisation and volume growth. The company's focus on maximizing value in its existing centers and improving operational efficiency has led to strong patient fee growth and improved profitability. The Group's 1H24 results include patient fees of $147.1m, up 10.4% vs pcp, and underlying EBITDA of $13.9m, up 51.7% vs pcp. The Group also maintained a net cash position of $13.3m at the end of December 2023 and declared an interim dividend of 2.1 cents per share (cps).
Pacific Smiles' strategic approach of maximizing value in its existing centers, coupled with effective cost management and continued improvement in labor productivity, has resulted in a strong financial performance for 1H24. The Group's focus on increasing utilisation within existing centers has driven significant volume and profit growth. Despite inflationary cost pressures, the company has effectively managed growth and profitability, leading to a step change improvement in underlying NPAT and a dividend of 2.1 cps (fully franked). The management team remains focused on maintaining a positive culture for both dentists and employees, with improvements in dentist and employee turnover, as well as high patient satisfaction.
Pacific Smiles Group's 1H24 results demonstrate a strong financial performance attributed to its strategic approach of maximizing value in existing centers, effective cost management, and continued improvement in labor productivity. The company's focus on increasing utilisation within existing centers has resulted in significant volume and profit growth, reflected in the 10.4% increase in patient fees and the 51.7% increase in underlying EBITDA compared to the prior corresponding period. The Group's net cash position of $13.3m at the end of December 2023 and the declared interim dividend of 2.1 cps (fully franked) underscore the Board's confidence in the Company's strategy and growth prospects. Pacific Smiles reaffirms its full year guidance for FY24, with patient fees expected in the range of $293m to $297m and underlying EBITDA in the range of $26m to $28m. The company's Managing Director & Chief Executive Officer, Andrew Vidler, expressed confidence in the company's strategic growth path, supported by strong revenue growth, healthy bottom line, and a net cash position.