Ramsay Health Care (RHC) H1 2025 earnings summary

Executive summary

• Reported net loss after tax and minority interests of AUD 104.9 million, driven by AUD 263.8 million in non-recurring items, including a AUD 305 million impairment in the UK (Elysium) and a AUD 64.5 million tax provision release.

• Underlying NPAT from continuing operations (excluding non-recurring items) rose 10.7% to AUD 158.9 million, supported by strong Australian and UK hospital performance and lower interest costs.

• Revenue increased 5.7% year-over-year to AUD 8.54 billion, with growth in Australia and the UK offsetting weaker results from Elysium and Ramsay Santé.

• Fully franked interim dividend of AUD 0.40 per share declared, payout ratio 61.2% of underlying NPAT.

• CEO priorities include transforming the Australian hospital business, strengthening capital discipline, and evolving the culture to drive innovation and performance.

Financial highlights

• Group underlying EBIT from continuing operations was AUD 500.1 million, down 1.0% year-over-year, reflecting challenges in Elysium and Ramsay Santé.

• NPAT from continuing operations, excluding non-recurring items, rose 10.7% to AUD 158.9 million, driven by strong Australian and UK hospital performance and lower interest costs.

• Operating cash flow improved 44% year-over-year, and free cash flow benefited from a 6% decline in capital expenditure.

• Leverage ratio at 2.07x, within target (<2.5x); net debt increased to AUD 4.9 billion due to seasonality and repayments.

• EPS pre-non-recurring items rose 10.4% to 65.4cps; reported NPAT (including non-recurring items) was a loss of AUD 104.9 million.

Outlook and guidance

• FY25 is expected to show activity growth across all regions, but at a lower rate than FY24, with current trading conditions persisting.

• Dividend payout for FY25 to be maintained at 60%-70% of NPAT after minorities, excluding non-recurring items.

• Full-year net interest costs forecast at AUD 580-610 million; capital expenditure for FY25 expected at AUD 755-870 million.

• Development capex for Australia revised lower to AUD 220-260 million.

• Strategic review of Ramsay Santé underway, with Goldman Sachs appointed as advisor.