Australian Clinical Labs (ACL) H2 2024 earnings summary

Executive summary

• FY24 revenue reached AUD 696.4 million, with underlying EBIT of AUD 62.6 million, meeting guidance; H2 EBIT margin improved to 11% from 7% in H1.

• Non-COVID revenue grew 5.4% year-over-year to AUD 646.7 million, offsetting a 59% decline in COVID-related revenue.

• Free cash flow before interest, tax, and financing rose 4% to AUD 54.4 million; cash conversion from EBITDA was 101%.

• Final fully franked dividend of AUD 0.09 per share declared, totaling AUD 0.12 per share for FY24 (77% of underlying NPAT, 4.6% yield).

• Announced a 12-month on-market share buy-back program for up to 20 million shares (~10% of share capital).

Financial highlights

• Underlying EBITDA was AUD 191 million, up 1.3% year-over-year; underlying EBIT margin was 9% for FY24, 11% in H2.

• Underlying NPAT was AUD 31.6 million, with H2 contributing AUD 21.3 million.

• Net debt (excluding leases) improved to AUD 28.9 million, 0.4x LTM underlying EBITDA; cash at year-end was AUD 26.1 million.

• CapEx at AUD 6.5 million (~1% of revenue); ongoing CapEx expected at AUD 8–10 million annually.

• Dividend payout ratio was 77% of underlying NPAT; dividend yield at 4.6% based on 27 August share price.

Outlook and guidance

• FY25 revenue expected at AUD 725–752 million, with underlying EBIT of AUD 65–73 million, based on 4–8% revenue growth.

• H2 FY25 expected to be stronger than H1 due to seasonally higher volumes; double-digit EBIT margins anticipated under normalized conditions.

• FY25 started strongly, with July revenue per working day up 7.6% and YTD volume growth at 6.6%.

• Billing enhancement initiatives and new test commercializations expected to contribute from FY26.