What’s defining the momentum for these ASX 300 listed healthcare share prices: IDX, NAN, ANN

Summary

  • Healthcare sector has been a standout performer in 2020, a year marred by the coronavirus pandemic.
  • ASX 300 healthcare company Integral Diagnostics’ FY20 NPAT up by 21.9%, and revenue rose by 18.7%.
  • Integral Diagnostics completed the acquisition of Imaging Queensland on 1 November 2019 & acquisition of Ascot Radiology in New Zealand is projected to finish on 1 September 2020.
  • Nanosonics’ revenue during FY20 boosted 19% despite a tough fourth quarter.
  • Health and safety protection provider Ansell’s profit jumps 5.2% to US$158.7 million due to rising demand for hand and body protection products and surgical gloves.

During the current reporting season, healthcare companies have reported impressive financial results amid the opportunities created by COVID-19 pandemic in the healthcare sector. The share price of ASX listed healthcare companies remains on watch after their remarkable performance.

3 ASX 300 listed healthcare companies reported their results for FY20 on 25 August 2020. Let us delve deep and discuss in detail - Integral Diagnostics, Nanosonics, and Ansell.

Integral Diagnostics’ FY20 NPAT up by 21.9%

Healthcare services company Integral Diagnostics Limited (ASX:IDX) provides diagnostic imaging services to patients and referrers, including general practitioners (GPs), medical specialists along with allied health professionals across Australia and New Zealand.

On 25 August 2020, Integral Diagnostics updated the market with its results for the FY20 (year ended 30 June 2020). The quick highlights are-

  • During FY20, the statutory NPAT was reported at A$23.0 million after application of AASB 16, customer contract amortisation, transaction and other costs of A$8.2 million, ~ 21.9% rise in Operating NPAT of A$31.2 million.
  • Operating EBITDA was recorded at A$64.1 million (23.3% margin) on revenue of approximately A$274.1 million.
  • Revenue growth of 18.7% during the year was driven by new sites and investment in new equipment along with 8-months contribution from Imaging Queensland notwithstanding COVID-19 triggering declines from March 2020 onwards.
  • Operating earnings per share (EPS) of 17.0 cents on operating NPAT of almost A$31.2 million.
  • Free cash flow during the period reported at A$55.7 million with Net Debt of $124.4 million.
  • The Company declared a final fully franked dividend of 4.0 cents per share payable on 1 October 2020.

The Chair of Integral Diagnostics, Helen Kurincic stated-

Acquisition of Imaging Queensland and Ascot Radiology-

The Company completed the acquisition of Imaging Queensland on 1 November 2019. Integration and operating performance have been in line with the anticipations when considering the COVID-19 impacts.

The acquisition of Ascot Radiology in New Zealand was announced on 10 June 2020 and is projected to complete on 1 September 2020. This strategic acquisition includes nine diagnostic imaging clinics.

FY21 Outlook- In FY21 the focus of Integral Diagnostics will be-

  • Importantly the Company will focus on managing ongoing impacts of COVID-19 and drive organic growth, business integration as well as deliver further efficiency gains.
  • Integral Diagnostics plans to complete and integrate Ascot Radiology into IDX during FY21.
  • The Company would continue to accelerate the use of digital and artificial intelligence (AI) technology to enhance the experience of patient and referrer.
  • In the financial year 2021, Integral Diagnostics would focus on its environmental, social and governance program with a specific focus on ethical supply chains, responsible consumption, and community relationships.

On 25 August 2020, IDX share price was trading at A$4.080, up by 4.082% with a market capitalisation of almost A$763.16 million.

Nanosonics’ Full-year 2020 Revenue Increased 19% Despite a tough 4th Quarter

Healthcare sector player Nanosonics Limited (ASX:NAN) specialised in the development as well as commercialisation of infection control solutions.

On 25 August 2020, Nanosonics updated its full-year financial results for 2020 (year ended 30 June 2020). For Nanosonics, FY20 has been another year of substantial achievement and progress with several key milestones achieved against the strategic growth agenda of the Company.

DO READ: 3 Growth Stocks to Build Recession-Proof Portfolio: ALU, NAN, PPH

Highlights from the financial front-

  • Revenue of A$100.1 million (A$93.7 million in cc), up 19% (11% in cc).
  • Revenue in North America was reported at A$90.2 million, up by 18%, up 37% in Europe and the Middle East to A$5.2 million, and in the Asia Pacific to $4.7 million, up 17%.
  • Gross profit, during the period, reported at A$75.5 million, or 75.4% of revenue.
  • During the first three-quarters of FY20, robust growth was experienced with total revenue rising by 26% on pcp.
  • Revenue in Q4 recorded at A$25.3 million and was effectively flat compared to pcp (rise of 1%), primarily driven by the anticipated consequences of the COVID-19 pandemic.

ALSO READ: 5 ASX-Listed Companies with Solid Balance Sheet: CDA, ALU, MPL, PME, NAN

Outlook 2021- Nanosonics remains optimistic about the future:

  • In FY21, the Company will continue to establish the trophon technology as the standard of care in those markets where trophon is available currently.
  • Nanosonics would expand and invest in new markets, driving the awareness of the significance of High-Level Disinfection of ultrasound probes.
  • The Company is planning to expand its product portfolio across key vectors of infection prevention through internal R&D as well as external opportunities.
  • In FY21, Nanosonics will maintain a robust financial position to support growth investments while providing operational efficiencies, scale, and leverage.

However, Nanosonics is not providing any guidance for FY21 because of the uncertainties and risks associated with COVID-19.

On 25 August 2020, the share price of NAN was trading at A$6.210, down by 9.607%, with a market capitalisation of almost A$2.07 billion.

Ansell Profit Jumps 5.2% to US$158.7 million Amid COVID-19 Pandemic

ASX 300 listed health and safety protection provider Ansell Limited (ASX:ANN) is engaged in enhancing human well-being. The Company manufactures personal protective equipment (PPE) including gloves, face masks that can be used in the fight against the COVID-19.

MUST READ: Can rising COVID-19 cases push these stocks further north? (RMD, FPH, ANN)

On 25 August 2020, Ansell updated its FY20 annual report on the ASX, the highlights are-

  • Sales of US$1,613.7 million increased by 7.7% (9.3% CC & 7.6% organic growth).
  • Healthcare organic growth increased by 13.4%, robust performance entering the second half of FY20 was further accelerated by COVID-19 related requirement, especially for Exam/Single Use products.
  • EBIT reported at US$219.7 million, up by 8.3% YoY & 21% on a CC basis as compared to Adjusted EBIT of FY19.
  • Profit attributable recorded at US$158.7 million, increased by 5.2% YoY & 19% on a CC basis as compared to Adjusted Profit Attributable during FY19.
  • Strong operating cash flow generation of nearly US$191.7 million with a cash conversion of 117.7%.

ALSO READ: Ansell - A Star in the Pandemic-Stricken ASX Boat

On 25 August 2020, the share price of ANN was trading at A$39.520, down by 1.935%. The Company has a market capitalisation of A$5.18 billion.

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