Ryman Healthcare (RYM) H1 2025 earnings summary

Executive summary

• Net profit after tax fell 50% to $94.4 million for the period, with negative cash flow from existing operations and a board and executive renewal, including a new CEO and functional structure.

• Significant business improvement initiatives delivered $18 million in annualized savings, with further cost reductions targeted and a new pricing structure launched.

• The company operates 49 villages, over 9,500 retirement units, and 4,600 aged care beds, with a growing presence in Victoria, Australia.

• Major accounting policy changes and restatements were implemented to enhance transparency and comparability, including DMF discounting removal and reclassification of development land.

• No interim dividend declared for the period; dividend policy to be reviewed in FY26.

Financial highlights

• Net profit after tax was $94.4 million, down 49.5% from $187.1 million year-over-year, with revenue rising 10% to $366.3 million and operating expenses up 18% to $351.7 million.

• Net profit before tax and fair value movements was a loss of NZD 79.8 million, down NZD 17.8 million year-over-year.

• Cash flow from existing operations was negative $7.8 million, a $24.8 million decline year-over-year; free cash flow improved to negative $52.5 million.

• Cash flow from development improved to negative $44.7 million, a $132 million improvement year-over-year.

• Gross resale margin compressed to 26.6%, down three points year-over-year due to flat pricing.

Outlook and guidance

• Free cash flow for FY25 now expected to be negative $50–100 million, revised from previous positive guidance, as settlements are deferred into FY26.

• Capital expenditure guidance reduced to $625–675 million, down from $700–820 million.

• Delivery of retirement units and aged care beds expected at the top end of 850–950 range.

• Further business improvement savings targeted by end of FY26.

• Deferred management fee structure changed to a choice of 30% or 25% with a higher entry price, expected to increase future taxable cash flows.