Oceania Healthcare (OCA) H2 2025 earnings summary

Executive summary

• Achieved positive momentum in FY 2025 with improved sales and cash flow, particularly at key sites like Helia and Redwood.

• Underlying EBITDA rose 4.1% to NZD 86 million, with total comprehensive income up 5.8% year-over-year.

• Total sales volume increased 9.2% to 520 units, driven by strong execution and incentives.

• Enhancement plan underway targeting NZD 15–20 million in cost savings and operational improvements.

• No dividend declared for FY 2025; revised dividend policy to be announced at the annual meeting in June.

Financial highlights

• Underlying EBITDA reached NZD 86 million, up from NZD 82.6 million in FY24 (+4.1%).

• Operating cash flow increased to NZD 110.3 million from NZD 103 million, with ORA receipts up 30.1% to NZD 294.5 million.

• Total comprehensive income rose 5.8% to NZD 74.6 million; net asset growth of NZD 75 million and asset growth of NZD 158 million.

• Gearing reduced from 38.3% to 36.3% year-over-year.

• Net profit after tax was NZD 30.4 million, down 3.5% year-over-year.

Outlook and guidance

• Targeting NZD 15–20 million in additional cost savings in FY 2026–2027, with a transformation office and ICT investment to support this.

• Focus on reducing unsold stock and further improving sales cadence at key sites.

• CapEx for FY 2026 expected to be around NZD 70 million, mainly for Franklin, Meadowbank, and Elmwood demolition.

• Receivables balance expected to normalize to NZD 60–70 million as new product introductions slow.

• Revised dividend policy to be announced at ASM in June.