Pacific Smiles Group Announces Strong Financial Results for FY24
PACIFIC SMILES GROUP LIMITED (PSQ) Share Update August 2024 Tuesday 27th
Pacific Smiles Group Reports Strong Earnings Growth Driven by Higher Volumes and Efficiency
Pacific Smiles Group Limited (ASX: PSQ) has announced its financial results for the year ending June 30, 2024, showcasing impressive growth in patient fees and profitability driven by higher volumes and operational efficiencies.
Instant Summary:
- Patient Fees of $291.8 million, up 7.9% year-on-year
- Group Revenue of $179.8 million, up 8.7% year-on-year
- Underlying EBITDA of $28.2 million, up 16.9% year-on-year
- Underlying NPAT of $8.9 million, up 98.3% year-on-year
- Return on Equity of 13.2%, up from 4.0% in the previous corresponding period
- Net Cash of $17.7 million at year-end, with a debt-free position
- Final Dividend of 3.25 cents per share, total dividend for FY24 of 5.35 cents per share
Financial Performance
Pacific Smiles Group Limited (ASX: PSQ) has reported robust financial results for the fiscal year ending June 30, 2024. The company achieved a 7.9% increase in patient fees, reaching $291.8 million. Group revenue also saw an 8.7% rise, totaling $179.8 million.
Underlying EBITDA grew by 16.9% to $28.2 million, reflecting the positive impact of higher patient fees and enhanced operational efficiency. Underlying NPAT surged by 98.3% to $8.9 million, showcasing significant profitability improvements.
Operational Efficiency
Pacific Smiles focused on increasing utilization within existing centers, which contributed to the growth in appointment volumes and operational efficiency. Total practitioner hours rose by 3.9% to over 717,000 hours, and total appointments attended increased by 3.5% to approximately 1.05 million.
The company managed to offset inflationary cost pressures, driven by a 5.75% increase in modern award rates and CPI-linked lease increases, through improved supplier partnerships and focused inventory management.
Dividend and Cash Flow
Pacific Smiles declared a final dividend of 3.25 cents per share, bringing the total dividend for FY24 to 5.35 cents per share. The company achieved a debt-free position with net cash of $17.7 million at the end of the fiscal year.
Future Outlook
The company remains optimistic about continued growth in FY25, with year-to-date performance indicating further improvements across key financial and operational metrics. Patient fees for FY25 to date stand at $50.8 million, reflecting a 10.9% year-on-year increase.
The strong financial performance of Pacific Smiles Group is likely to have a positive impact on its stock price. The significant growth in patient fees, revenue, and profitability, along with a debt-free position and a healthy dividend payout, will likely boost investor confidence.
Investor Reaction:
Analysts are expected to react positively to the company's strong financial results. The growth in patient fees and operational efficiency, along with the debt-free status, are likely to be viewed favorably by investors.
Conclusion:
Investors should consider the strong financial performance of Pacific Smiles Group as a positive indicator for future growth. The company's focus on operational efficiency and patient fee growth positions it well for continued success. Investors are encouraged to stay informed about the company's developments and consider the potential for long-term gains.