How are Sonic’s (ASX:SHL) shares faring post AGM results?

3 min read | November 17, 2022 02:57 PM AEDT | By Tamnna

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Image source: © Piter2121 | Megapixl.com

Highlights of Sonic’s AGM results

For FY22, Sonic’s revenue increased by 7% to AU$9.3 billion from the previous comparable period (pcp).
The company’s EBITDA and net profit both saw an increase of 11% in comparison with FY21. The EBITDA for FY22 was AU$2.8 billion, and the net profit was AU$1.5 billion.
According to the ASX filing, Sonic’s successful fiscal year was driven by ongoing COVID testing, the base business, and acquisitions during the year.
Sonic’s organic (constant currency) revenue growth was 5%, comprising 2.1% of base business revenue (non-COVID).
The company spent AU$628 million in the form of acquisition investment during the year to expand its operations.
Sonic had a cash balance of AU$1.5 billion at the end of FY22.
To create more value for its shareholders, Sonic is running an on-market share buyback program of up to AU$500 million, as per the AGM presentation.
Sonic’s full-year dividend for FY22 was AU$1 and the final dividend was AU$0.60, up 10% and 9% from the pcp, respectively (both fully franked).
In FY22, COVID revenue for Sonic was 13% higher than it was in FY21, driven by more than 55 million COVID PCR tests performed from March 2020 to date.
Sonic’s net debt, compared with 2019, decreased by AU$1.5 billion in FY22.
The company’s current headroom is about AU$1.5 billion.

In a statement, Mark Compton, the chairman of Sonic Healthcare, said:

Data Source: Company announcement dated 17 November 2022

During the AGM, the company shared its FY23 outlook but didn’t provide any FY23 guidance due to COVID-related unpredictability. In FY23, Sonic expects a boost in its base business in association with the ongoing demand for COVID testing.

How did Sonic perform in Q1 FY23?

Below are the highlights from Sonic’s trading performance for the quarter ended 30 October 2022:

Data Source: ASX announcement on 17 November 2022

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