Healthia (ASX:HLA) share price on watch after 78% profit growth

The share price of Healthia Ltd (ASX:HLA) will be on watch tomorrow after reporting profit growth of 78% in its FY21 half-year result.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Healthia Ltd (ASX: HLA) share price will be on watch tomorrow after the healthcare business announced strong growth in its FY21 half-year result.

What did Healthia announce?

Healthia revealed that its customer revenue increased by 38.9% to $61.5 million. This revenue growth was supported by organic revenue growth of 14.5%.

Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) grew 90.7% to $11 million. The underlying EBITDA margin increased by 486 basis points to 17.87%.

Underlying net profit after tax plus amortisation of customer list intangibles (NPATA) jumped 85.5% to $4.7 million. The underlying NPATA margin increased 194 basis points to 7.72%.

The underlying earnings per share (EPS) grew 78.2% to 6.86 cents. The Healthia board of directors decided to declare an interim fully franked dividend of 2 cents per share.

Management said that this result is testament to the ongoing dedication and resilience of its clinicians and support staff. Healthia said the result was also reflective of the essential nature of the allied health services that its businesses and people provide to their local communities.

The company said that as it integrates its new 'eyes and ears' division, settled in November 2020, into its allied health network it will attempt to generate growth from cross-referrals between Healthia's three disciplines to promote better patient outcomes.

Recent Healthia share price movements

The Healthia share price has gone up by 33% over the last 12 months, despite the COVID-19  pandemic. Since the end of October 2020, Healthia shares have actually risen by 60%.


Healthia said it will continue to focus on four areas: patient focused outcomes, organic growth, future accretive acquisitions and vertically integrated business units.

It has a few different strategies to generate ongoing organic growth. It said it will continue to invest in industry-leading education, tools and support for clinicians, as well as developing industry-leading career opportunities for all team members. This is expected to continue to drive strong organic growth into the future.

Other organic growth strategies could be to further enhance its centralised support functions to clinical teams, finding additional opportunities to co-locate services, introducing services into existing locations and working on new ways to engage its teams.

Healthia said that the acquisition of The Optical Company and the addition of optometry increases its total addressable revenue market from $6.5 billion to $9.8 billion. That breaks down to $2.7 billion in feet and ankles, $3.8 billion in bodies and minds and $3.3 billion in eyes and ears, with the parent company haing a market share of less than 1.5%.

The company said that with its low market share, and the fragmented nature of the target allied health industries it operates, acquisitions will continue to be a central pillar of the growth strategy.

Healthia expects to deploy a minimum of $20 million per annum into new allied health acquisitions. These are expected to be funded from a combination of bank debt, free cash flow and clinic class shares.

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia has recommended HEALTHIA FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

Modern accountant woman in a light business suit in modern green office with documents and laptop.

1 overlooked ASX growth stock I'm chasing for multibagger potential

I believe this stock can create strong returns in the years ahead.

Read more »

A man sits in deep thought with a pen held to his lips as he ponders his computer screen with a laptop open next to him on his desk in a home office environment.
Broker Notes

Top brokers name 3 ASX shares to buy next week

Brokers gave buy ratings to these ASX shares last week. Why are they bullish?

Read more »

Cheerful Father And Son Competing In Video Games At Home
Share Market News

Here's how the ASX 200 market sectors stacked up last week

ASX consumer discretionary shares rose by more than 3% last week.

Read more »

happy investor, share price rise, increase, up
Broker Notes

These ASX 200 shares could rise 15% to 50%

Analysts think these shares can rise strongly from where they trade today.

Read more »

a man peers through a broken brick wall to see grey clouds gathering beyond it
Share Market News

Why this smashed ASX 200 share is a fundie's top value pick

It's an ASX consumer discretionary stock that has lost 40% of its value over the past year.

Read more »

a man sits back from his laptop computer with both hands behind his head feeling happy to see the Brambles share price moving significantly higher today

How I plan to invest my tax cuts

I have big plans for my tax cut cash this year.

Read more »

Red percentage sign on blocks on top of each other, symbolising interest rates.
Share Market News

Here's when Westpac says the RBA will cut interest rates

Will interest rates be going lower any time soon?

Read more »

a man's hand places a white egg into a basket of similar white eggs.

With its 8% yield, I think this undervalued ASX 200 stock is an opportunity not to miss

The value and passive income of this stock looks very eggciting to me.

Read more »