Healius (HLS) H2 2024 earnings summary

Executive summary

• Group BAU revenue increased 6.1% to AUD 1.74 billion for FY 2024, with EBITDA at AUD 346.6 million and underlying EBIT of AUD 65.4 million, at the top end of guidance.

• Transformation initiatives delivered AUD 20.4 million in net benefits, exceeding guidance.

• Covid-related revenue declined by AUD 61 million, while Agilex Biolabs and Lumus Imaging delivered strong growth.

• Net debt reduced to AUD 361 million, with gearing at 4.1x and interest cover at 3.1x, both within covenant limits.

• The Lumus Imaging sale process is well advanced, with outcome expected soon.

Financial highlights

• Underlying EBITDA fell 7.9% year-over-year to AUD 346.6 million; underlying EBIT dropped 33.9% to AUD 65.4 million.

• Reported EBIT was a loss of AUD 579.3 million, impacted by a AUD 603.2 million impairment charge in Pathology.

• Pathology BAU revenue grew 4.7% (including Agilex), with COVID revenue down AUD 61 million.

• Lumus Imaging revenue up 12% in community and hospital segments, outpacing MBS growth.

• Agilex revenue up 20.8%, EBITDA up 102.3%, and EBIT nearly tripled to AUD 5.1 million.

Outlook and guidance

• Pathology volumes trending slightly above 4% growth in early FY 2025.

• Imaging volumes up ~15% and revenue up 12% year-to-date.

• Agilex expected to continue significant revenue and EBIT growth in FY25.

• Focus remains on embedding transformation in pathology and driving automation, digitisation, and technology-enabled efficiency.