ASX healthcare stock Regis Healthcare Ltd (ASX: REG) has surged into the green on Monday after the company posted its FY24 results.
Regis shares are currently fetching $4.49 apiece, more than 2% higher as investors digest the company's FY24 financials.
Let's see what the healthcare company posted.
ASX healthcare stock up on solid full-year results
Key highlights from the company's FY24 results include the following:
- Revenue increased by 30% year over year to $1.01 billion
- Underlying pre-tax earnings rose 29% to $107.2 million
- Underlying earnings before interest, tax and amortisation (EBITA) surged 55% to $61.5 million
- Net profit before amortisation grew by 25% year over year to $35.6 million
- Net operating cash flow increased by a remarkable 140% to $252.3 million, supported by a net cash inflow from refundable accommodation deposits (RADs)
- Declared a dividend of 6.64 cents per share, 50% franked
What else happened in FY24?
The ASX healthcare stock experienced decent growth in FY24, driving revenues and pre-tax income, each more than 30% higher.
Regis also acquired CPSM Pty Ltd, a premium aged care business in South-East Queensland. This added five homes with 644 beds to its portfolio.
Management says the integration of these homes has been successful, with average occupancy reaching an impressive 97%.
The company also saw an upshift in care standards, with the average care minutes per resident increasing to 210.5 minutes in the final quarter.
This was up from 188 minutes in Q1.
Additionally, Regis' average overall star rating improved from 3.32 to 3.62 over the same period, reflecting its commitment to quality care.
The overall start rating measures a care provider's performance across four areas, including compliance, quality, resident's experience, and staffing.
Regis' growth throughout the year saw its Board declare a dividend of 6.64 cents per share. Investors can expect payment in their accounts by 25 September. This could impact the ASX healthcare stock.
What did management say?
Regis Healthcare's Managing Director and CEO, Dr Linda Mellors, commented positively on the company's performance:
Regis has delivered excellent growth in FY24 across key metrics including occupancy, revenue, underlying earnings and cashflow. Funding has improved under AN-ACC to meet the care minutes mandate, workforce pressures have moderated, and we have completed and integrated the CPSM acquisition of five homes in South-East Queensland. Regis finished the year with a strong balance sheet and active acquisition pipeline.
What's next?
Looking ahead, Regis Healthcare plans to continue growing the business, including the construction of a new 112-bed residential aged care home in Melbourne. This is set to open in late 2024.
Whilst it didn't provide formal guidance, the company says it expects to benefit from several long-term tailwinds, including an ageing population and additional government funding.
Regis continues to adapt to a rapidly changing regulatory environment and expects to benefit over time from the ageing population, improved workforce availability, additional Government funding and strategic growth initiatives.
Regis will use its strong balance sheet, substantial debt facility and disciplined management of the business, to support the active pursuit of further material strategic acquisitions and greenfield developments to drive increased shareholder value.
ASX healthcare stock snapshot
Regis' FY24 performance has been well received on Monday with investors driving shares into the green at the time of writing.
Over the past 12 months, the ASX healthcare stock is up more than 86%.
