The All Ordinaries Index (ASX: XAO) has been in a pendulum swing over the ASX reporting season. Here are three ASX healthcare companies that have gone under the radar.
Regis Healthcare Ltd (ASX: REG)
The Regis share price only lifted 0.32% to close at $1.59 after the company released its FY22 results today.
The ASX-listed residential care provider recorded a net loss after tax of $38.8 million. This is a major reversal of its net profit after tax (NPAT) of $19.9 million in FY21. It didn't help that revenue only grew 3.4%.
One reason for the drop in Regis' bottom line is likely the Australian government's 2021-22 budget decision to remove Aged Care Approval Rounds. This means from 1 July 2024, consumers can choose an approved provider that best suits their needs. Consequently, the government will discontinue operational places/bed licenses from this date.
Given this discontinuation, the depreciation of the operational places needs to be adjusted from an indefinite period to the date of expiry, being 1 July 2024. The change brought about a $61 million negative impact on net profit.
However, this does not affect cash flow as Regis still declared a final dividend of 2.32 cents per share.
The dividend is 50% franked and payable on 30 September.
EBOS Group Limited (ASX: EBO)
The EBOS share price only increased 1.59% to close at $34.54 per share on Wednesday despite a strong set of FY22 results.
EBOS is a wholesaler and distributor of healthcare, medical and pharmaceutical products.
Revenue surged 16.6% to a record high of $10.7 billion due to strong performances from both the healthcare and animal care segments. Net profit after tax also rose from $202.6 million in FY21 to $228.2 million.
The healthcare distributor also declared a final dividend of NZ 49 cents per share, resulting in total dividends declared for FY22 to NZ 96 cents per share.
Despite the inflationary environment, the adverse impact of supply chain issues, and staff shortage, EBOS still managed to increase earnings before interest and taxation margin slightly in FY22.
Management emphasised the resilience of the business and expect another year of profitable growth in FY23. They believe the balance sheet is in sound shape to support expenditure needs as well as future growth opportunities.
Neuren Pharmaceuticals Ltd (ASX: NEU)
The Neuren share price went down slightly by 2.14% to $5.48 at the close of trade today on the back of company results for HY22.
Total revenue moved slightly from $234,000 to $283,000. Neuren's net loss improved ever so slightly by 11% to $7 million.
Neuren is a biopharmaceutical company that engages in the development of new therapies for brain injury, neurodevelopment, and neurodegenerative disorders. So, it's still spending money to develop commercial solutions.
The most notable development was in July when Neuren's US partner Acadia Pharmaceuticals submitted an application to the US Food and Drug Administration (FDA) for trofinetide, a drug that could treat Rett syndrome in adults and pediatric patients aged two years and older.
While an application is promising, it's still too early to know whether this will be a success or not. Such is the unpredictable nature of biotech companies.
