The Healius Ltd (ASX: HLS) share price received a boost in early trade after the company released its first-half report. At the time of writing, the Healius share price was up 4.10% to $4.06.
Healius share price gets a boost from results
Earlier today, Healius released strong results for the first half of FY21 ending 31 December 2020.
The company's report was headlined by a 190% increase in net profit after tax (NPAT) of $75.6 million. For the half-year, Healius also reported a 230% increase in earnings before interest and tax (EBIT) of $136.6 million.
For the first 6 months of FY21, Healius generated $953.5 million in underlying revenue. The rebound in revenue marked a 16% increase compared to the $817.4 million generated in the first half of FY20.
Despite a rise in underlying net profits, Healius recorded a lower statutory net profit of $62.8 million. The company also highlighted the sale of its medical and dental centres late last year, with Healius banking $489.2 million.
Healius noted its strong capital position, with the company recording a 56.2% increase in operating cash flow of $251.2 million. In addition, the company declared a fully franked interim dividend of 6.5 cents per share, representing a 55% payout ratio.
Riding COVID-19 revenue wave
Despite the COVID-19 pandemic impacting certain divisions, Healius saw its pathology department perform strongly. For the half-year, the company saw revenue in its pathology division rise 22% to $711.4 million. Healius attributed the strong performance to robust COVID-19 testing volumes.
On the contrary, the company saw government-imposed lockdowns impact its imaging division. As a result, Healius reported a 39.1% decline in EBIT for its imaging department for the half-year.
Healius also noted a 21.5% increase in revenue from its day hospitals division. For the first half, the division reported revenue of $41.8 million and EBIT of $6.8 million.
Healius chief executive, Dr. Malcolm Parmenter, noted that:
The results delivered for 1H 2021 demonstrate the inherent strength of our simplified portfolio and value proposition centred on our specialist diagnostics businesses, while the performance of Day Hospitals validates our confidence in the medium and long-term prospects of this business.
The outlook for Healius
Management noted that Healius is well positioned for the second half of FY21, as non-COVID revenue streams recover across its divisions.
Given the fluid nature of the COVID-19 pandemic, the company's management did not provide guidance for the full year.
At the time of writing, the Healius share price is trading more than 3% higher for the day.
