Green Cross Health (GXH) H2 2024 earnings summary

Executive summary

• Group revenue rose 2% year-over-year to $503.9m from continuing operations, while operating profit (EBIT) declined 7% to $31.8m due to inflation, lower retail spending, and reduced COVID-19 activity.

• Net profit after tax attributable to shareholders fell 20% to $12.0m, reflecting margin pressures and the absence of prior year one-off gains.

• The group completed the divestment of its Community Health division in the prior year, focusing on pharmacy and medical services.

Financial highlights

• Pharmacy operating revenue increased 1% to $363.6m; operating profit dropped 8% to $19.3m.

• Medical operating revenue grew 5% to $140.3m; operating profit decreased 8% to $15.0m.

• Net assets declined 18% year-over-year to $166.6m, mainly due to dividend payments and reduced cash balances.

• Final dividend of 2.0cps declared, bringing total FY24 dividends to 4.5cps.

Outlook and guidance

• Macro-economic challenges such as workforce shortages, inflation, and consumer spending constraints are expected to persist.

• Focus areas include labour efficiency, cost management, technology adoption, and expanding service offerings.

• Advocacy for increased government funding to primary healthcare continues.