Integral Diagnostics (IDX) H2 2024 earnings summary

Executive summary

• Revenue grew 6.6% to AUD 469.7 million, with operating EBITDA up 7.4% to AUD 91.5 million and margin improving to 19.5%; operating NPAT rose 1.3% to AUD 18.1 million.

• Statutory net loss after tax of AUD 60.7 million, driven by a AUD 71.6 million impairment in New Zealand and non-operating costs.

• Announced a transformational merger with Capitol Health Limited, expected to complete in Q4 CY24, targeting significant scale, synergies, and double-digit pro forma FY25 EPS accretion.

• Served over 1 million patients and performed more than 2.5 million exams, with high patient net promoter scores in Australia and New Zealand.

• Continued investment in technology, teleradiology, and ESG initiatives, focusing on operational efficiency and workforce development.

Financial highlights

• Free cash flow increased 5.5% to AUD 56 million; net debt reduced by AUD 11 million to AUD 183.5 million (2.6x EBITDA).

• Fully franked final dividend of 3.3 cents per share, with total FY24 dividends at 74.4% of operating NPAT.

• Organic revenue growth in Australia was 7.2% (adjusted for working days); New Zealand organic revenue up 5.3% (constant currency), with H2 revenue up 7.9% over H1.

• Average fees per exam in Australia increased 7.7%, driven by Medicare indexation and higher-end modality mix; overall volumes declined 0.5%.

• Operating diluted EPS increased 1.0% to 7.7 cents per share.

Outlook and guidance

• FY25 CapEx (excluding merger) expected between AUD 40–45 million, with spend likely at the lower end.

• July 2024 revenue growth in mid-teens, consistent with Medicare trends; August expected to be similar after adjusting for working days.

• Focus remains on organic growth, operational improvements, digital and AI adoption, ESG strategy, and executing the Capitol Health merger.