Image source: @Michal Jarmoluk/Pixabay

Highlights

  • Healius is a healthcare firm which deals in two diagnostic businesses-imaging and pathology
  • In 1QFY24, the company witnessed 6% YoY surge in core pathology volumes
  • In FY24, the company expects to report underlying EBITDA of AUD 383-393 million and EBIT of AUD 95-105 million

Healius Limited (ASX: HLS) is an ASX-listed healthcare firm with two core diagnostic businesses – pathology and imaging. The Australia-based firm offers specialty diagnostic services to consumers and their referring practitioners.

The 1.16 billion market cap company reported a 6.3% YoY rise in core revenue to AUD 1,623.2 million in the financial year 2023 (FY23), and a 9.5% YoY growth in imaging revenue to AUD 431.2 million. The period witnessed recovery in revenues for the core pathology segment, while imaging revenue  outpaced market growth. Moreover, the imaging business segment reported increased revenue per clinic via brownfield expansion of large-scale comprehensive sites.

Recent business update

Through an ASX update dated 27 December 2023, the company informed that Mitsubishi UFJ Financial Group, Inc. ceased to be a substantial holder in the company on 22 December 2023.

On 22 December 2023, the company shared that ACL has updated that it has received consent from the Australian Securities and Investments Commission to withdraw unaccepted offers made under its off-market takeover offer for all shares on issue in HLS. ACL withdrew its offer as of 22 December 2023.

Through an ASX-filing, the company released its quarterly update for the first quarter of FY24. During the quarter, the company recorded a 6% YoY surge in core pathology volumes and Lumus Imaging posted a 9% YoY increase in gross revenue.

Outlook

In FY24, the company expects to report underlying EBITDA of AUD 383-393 million and EBIT of AUD 95-105 million. During the reported period, the company anticipates the imaging market to continue with growth rates and the pathology market to grow in the second half of the year.

The company is focused on cost-out opportunities through digitization, automation and other technology enablers.

Share performance of HLS

HLS shares closed 1.24% higher at AUD 1.63 apiece on 28 December 2023. With this, HLS’s share price has dropped by 41.49% in the past one year and has increased by 15.19% in the past one month.

The 52-week high of HLS is AUD 3.13, recorded on 17 January 2023, and the 52-week low is AUD 1.183, recorded on 22 November 2023.

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 28 December 2023. The reference data in this report has been partly sourced from REFINITIV.