- Sonic Healthcare (SHL) has reported a 166 per cent growth in statutory net profit to $678 million for the first half of the 2021 financial year
- The ASX 200-lister also reported an 89 per cent growth to $1.3 billion in earnings before interest, taxes, depreciation and amortisation
- Further, revenue grew by 33 per cent to $4.4 billion as a result of COVID-19 testing
- To date, Sonic has performed over 18 million COVID-19 polymerase chain reaction tests across 60 labs worldwide
- Excluding COVID-19 testing, global base business revenue dropped a slight one per cent compared to the first half of FY20, but it performed better than in the second half of FY20
- Sonic is up a slight 0.98 per cent and shares are trading at $33.91
Sonic Healthcare (SHL) has reported a 166 per cent growth in statutory net profit to $678 million for the first half of the 2021 financial year.
Sonic Healthcare is a global healthcare company that provides laboratory, pathology and radiology services.
The company also achieved an 89 per cent growth to $1.3 billion in earnings before interest, taxes, depreciation and amortisation.
Further, the ASX 200-lister reported outstanding revenue of $4.4 billion — a 33 per cent growth.
Sonic attributes these attractive figures to the millions of COVID-19 polymerase chain reaction (PCR) tests that were performed in the half-year.
In April last year, Sonic partnered with the Australian Government to expand the capacity for COVID-19 testing, particularly in aged care facilities.
Sonic’s laboratories in New South Wales and Queensland were the first to perform high-volume COVID-19 testing with 100,000 Australians tested between March and April 2020.
To date, over 18 million COVID-19 PCR tests have been performed in about 60 of Sonic’s labs worldwide.
“The volumes and quality of testing we have been able to provide in such a short timeframe have only been possible through the investments we have made over many decades in our people and in infrastructure,” CEO Dr Colin Goldschmidt said.
“Our laboratory division achieved organic revenue growth of 39 per cent in the half year, with very strong growth in the U.S., Germany, Belgium and the U.K.,” Dr Goldschmidt said.
Excluding COVID-19 testing, global base business revenue dropped a slight one per cent compared to the first half of FY20. However, the business was much less impacted by dramatic falls in base business patient volumes compared to the second half of FY20.
“I truly believe that Sonic’s staff are unsung heroes of the COVID-19 pandemic, tirelessly and fearlessly providing our services for the benefit of others,” he concluded.
Now the company has adjusted to the new normal of high, but variable, COVID-19 testing volumes, Sonic will increase its focus on growth opportunities such as acquisitions, contracts and joint ventures.
Sonic is up a slight 0.98 per cent and shares are trading at $33.91 at 1:57 pm AEDT.