Sonic Healthcare Limited presented full year results for the year ending 30 June 2018 reporting 9.9% increase in earnings per share to $1.12 cents. As a result of Sonic’s expansion across the globe, net profit of the company increased to $476 million, up 11.2%, including one-off benefit of US tax rate change. At constant currency, earnings before interest tax depreciation and amortization increased 6.4% to $962 million, in line with company’s FY18 guidance.
Company’s management confirmed the acquisitions of Laboratory Bremen and Stabler laboratory group, in Germany while in USA the group gained momentum in forming laboratory partnerships with hospital systems.
With the statutory revenue growth of 8.2% to $5.5 billion, there has been significant growth in Laboratory division. Company reported 6% growth in organic revenue from Australian laboratory business at the back of winning six-month national bowel screening contract, while Australian diagnostic imaging business recorded 7% growth in organic revenue.
As per the statement of CEO Dr Colin Goldschmidt, the company’s strong financial and operational performance in FY18 is primarily attributable to the success of winning the eminent contracts during the year as well as acquisitions, restructuring, synergy extraction and debts’ refinancing strategies.
Gearing ratio reduced to 36.7%. Capital expenditure has gone down on completion of building projects.
The company declared final dividend of 49 cents per share, franked to 30%, which is 6.5% higher than previous corresponding period. The total of interim and final dividend makes full-year dividend to 81 cents, up 5.2%.
Sonic expects growth of 3-5% in earnings before interest tax depreciation and amortization for FY2019 over the FY2018 underlying EBITDA of $962 million. The company also anticipates 4% increase in net interest expense.
SHL share price dropped by 1.792% to $26.30 on 16 August 2018.
The Income available from dividends remains attractive for many investors.
We take a look at the best yields on the market and assess what they say about a company’s prospect.
One Thing is certain, though, Australia interest rates are still low, making income difficult to come by and keeping the focus for many investors on high yielding stocks. Kalkine’s team of analysts bought you handpicked report for “Top 25 Dividend Stocks For 2018.”
ASX-relevant Special Reports are published year-round to provide a detailed analysis into an investing opportunity or a potential risk to your portfolio.
Click here to get your free report.
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkinemedia.com and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.