Join our daily newsletter At The Bell to receive exclusive market insights
- Healthcare provider Paragon Care (PGC) says COVID-19 only marginally impacted its bottom line in 2021’s first quarter
- Paragon told shareholders its revenue only dropped 4.7 per cent in FY21’s opening quarter, coming in at $57 million
- It also said its gross profit margins suffered a minor hit, falling to 37.5 per cent from the 39 per cent tabled in the previous corresponding period (PCP)
- To improve its bottom line, the healthcare provider slashed operating costs by $1.5 million — a move the company says will boost savings through years’ end
- As its operating performance improved and JobKeeper subsidised employee wages, Paragon’s earnings before interest, taxes, depreciation and amortisation (EBITDA) rose 12 per cent to $7.5 million
- Following today’s update, Paragon shares jumped 2.63 per cent to trade for 19.5 cents
Healthcare provider Paragon Care (PGC) says COVID-19 only marginally impacted its bottom line in 2021’s first quarter.
In today’s update, the company detailed how its business performed in the new financial year, citing stable revenue and improved profitability. The company specialises in developing medical technology for a broad suite of medical sectors — everything from neonatal to veterinary care.
Pleasingly, Paragon told shareholders its revenue only dropped 4.7 per cent in FY21’s opening quarter, coming in at $57 million.
It also said its gross profit margins suffered a minor hit, falling to 37.5 per cent from the 39 per cent tabled in the previous corresponding period (PCP).
To improve its bottom line, the healthcare provider slashed operating costs by $1.5 million — a move the company says will boost savings through years’ end.
As its operating performance improved and JobKeeper subsidised employee wages, Paragon’s earnings before interest, taxes, depreciation and amortisation (EBITDA) rose 12 per cent to $7.5 million.
Commenting on the September quarter’s result, Paragon Care Chairman Phil Nicholl told investors he was pleased with the business’ performance amid COVID-19’s headwinds.
“We were able to switch our product mix to maintain revenue and our underlying profitability improved due to the effective implementation of our cost savings initiatives,” he said today.
“Although the operating conditions remain challenging, we remain confident in our strategy to capitalise on the significant growth potential in this market when conditions return to some form of normality post-COVID-19 impact,” Phil concluded.
Following today’s update, Paragon shares jumped 2.63 per cent to trade for 19.5 cents at 2:04 pm AEDT.
