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Highlights

  • Sonic Healthcare is a medical diagnostic company which offers laboratory and radiology services
  • In 1HFY24, SHL’s revenue jumped 5% YoY to AUD 4,306 million
  • The Vanguard Group, Inc has the highest stake in SHL with a shareholding of nearly 5.01%

Sonic Healthcare Limited (ASX: SHL) is an ASX-listed healthcare company which provides laboratory medicine / pathology, radiology, and primary care medical services across North America, Europe and Australia.

In the first half of the financial year 2024 (1HFY24), the company observed more than 15% YoY rise in its base business revenue to AUD 4,267 million and 5% YoY growth in total revenue to AUD 4,306 million. Revenue growth from base business comprises contributions from three synergetic acquisitions conducted during the reported period.

In 1HFY24, EBITDA fell by 20% YoY to AUD 737 million, impacted by significant drop in COVID-related revenues in laboratory operations.

Top 10 shareholders of SHL

The top 10 shareholders of SHL have around 23.68% shareholding in the company and the top four shareholders have 15.81% of the shareholding. The highest stake in this company is held by The Vanguard Group, Inc with a shareholding of nearly 5.01%.

Recent business update

On 27 May 2024, the company notified that Mark Raymond Compton acquired 1,000 SHL shares for AUD 25.35 apiece. Suzanne Crowe acquired 2,000 shares for AUD 25.32 apiece and Katharine Giles acquired 500 shares for AUD 24.72 apiece.

Through an ASX-filing, the company released an update on its FY24 earnings on 21 May 2024. The company informed that it expects to report EBITDA of approximately AUD 1.6 billion and revenue of around AUD 8.9 billion in FY24. Earlier, EBITDA guidance was AUD 1.7-1.8 billion. The company downgraded its EBITDA guidance on the back of inflationary pressure and currency exchange challenges.

Outlook

In FY24, the company anticipates delivering EBITDA of nearly AUD 1.6 billion and in FY25, it is likely to reach AUD 1.70 – 1.75 billion.

The company expects to realise synergies and witness improvement in returns from the investments done this year over the upcoming two years.

Share performance of SHL

SHL shares closed 0.33% lower at AUD 24.100 apiece on 29 May 2024. In the last one year, SHL’s share price has declined by almost 31.81%, while in the last three months, it has dropped by 17.75%.

The 52-week high of SHL is AUD 36.34, recorded on 28 June 2023, and the 52-week low is AUD 23.580, recorded on 21 May 2024. 

SHL Daily Technical Chart, Source: REFINITIV

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 29 May 2024. The reference data in this report has been partly sourced from REFINITIV.