Investors in ASX healthcare shares have had reason to smile this earnings season, with plenty of strong results so far.
At the smaller end of town, two healthcare players have come in with solid results on Wednesday. These are Pacific Smiles Group Ltd (ASX: PSQ) and SomnoMed Ltd (ASX: SOM).
Both stocks are now in the green after their annual numbers. Let's take a look at what they posted.
ASX healthcare shares post FY24 numbers
Pacific Smiles reported a strong performance for FY24, with patient fees rising 7.9% to $291.8 million.
The ASX healthcare share's revenue grew by 8.7% to around $180 million, while earnings before interest, tax, depreciation and amortisation (EBITDA) surged by 17% over the year.
The company also repaid all borrowings during the year, ending the period debt-free and with $17.7 million in net cash.
This prompted the Board to declare a final fully franked dividend of 3.25 cents per share, bringing the total payout to 5.35 cents.
CEO Andrew Vidler expressed satisfaction with the company's performance:
We are exceptionally pleased with this year's result, which is a real testament to the team's commitment. Our focus on the utilisation of existing centres and to drive growth in patient fees has underpinned this performance.
Utilisation has improved across the business, especially among our newer cohorts. Our revenue growth and ongoing efficiency improvements drove margin improvement, offsetting the impact of inflationary cost pressures.
Looking ahead, Pacific Smiles remains focused on extending the benefits of its service model to more dentists and patients across Australia.
The ASX healthcare share's FY25 performance is off to a strong start. Patient fees were up 10.9% year over year as of late August, totalling $50 million.
SomnoMed posts steady growth
SomnoMed also delivered a positive performance for FY24, with revenues reaching $91 million, up 9.6% from the previous year.
Despite this, gross margins tightened 300 basis points year over year to 69%. Whereas EBITDA came in line with expectations at $0.6 million.
Sales in its North American market were up 9% on the prior year, driven by "productivity optimisation, with record revenues in Q4…".
Meanwhile, in Europe, revenues were up nearly 11% at $52 million.
SomnoMed also incurred one-off restructuring costs of $3 million, which are expected to yield annualised savings of $5 million from the first quarter of FY25.
The ASX healthcare share's global patient base now exceeds 910,000, demonstrating its broad reach and impact in the sleep apnea treatment market.
Looking forward to FY25, SomnoMed has set ambitious targets, aiming for revenue of approximately $100 million and EBITDA of more than $5 million.
And it's already off to a decent start, according to the company:
Trading in the first 8 weeks of FY25 has seen revenue up approximately 20% year on year, on the back of the reduction of backlog and strong sales results. There is an expectation that growth will slow in the remaining quarters as the backlog is cleared. We have factored these dynamics into the FY25 guidance.
ASX healthcare shares snapshot
Investors in these ASX healthcare shares will likely be smiling after the companies produced reasonably strong FY24 earnings results.
In the last 12 months, Pacific Smiles shares are up 33%, whereas SonoMed shares have slipped 32% into the red.
