Pacific Smiles Group Limited (ASX: PSQ) Reports Strong AGMs and FY24 Results
Strong Financial Performance
Pacific Smiles Group Limited (ASX:PSQ) showcased robust financial results at its 2024 Annual General Meeting. For the financial year 2024 (FY24), the company reported patient fees of $291.8 million, marking a 7.9% increase from the previous year. The underlying EBITDA rose to $28.2 million, reflecting a significant margin expansion. Underlying net profit after tax was reported at $8.9 million, nearly doubling from last year.
CEO & Managing Director Gary Carroll noted, “We achieved improved profit margins and strong cash flows despite facing external pressures. We’re proud of our resilient performance.” The group concluded the year with a net cash position of $17.7 million.
Guidance and Future Outlook
For FY25, Pacific Smiles Group anticipates patient fees between $310 million and $318 million, representing a growth of 6.2% to 9.0%. The underlying EBITDA is expected to range from $31.2 million to $34.2 million, which translates to growth of 10.6% to 21.3%. The management team is committed to pursuing several strategic avenues to bolster growth through operational efficiencies and market expansion.
“Our focus will be on enhancing our digital infrastructure and optimising patient flow through our clinics,” Carroll explained. The group plans to open four new centres while closing two underperforming sites in the first half of FY25, an action expected to improve operational efficiencies.
Takeover Bid by Genesis Bidco
Pacific Smiles Group addressed a takeover bid from Genesis Bidco at the AGM, reinforcing its recommendation for shareholders to reject the offer. The board remains focused on driving shareholder value independently from the takeover approach, which has already seen Genesis disclose a voting power of 32.11%.
Chairman Giselle Collins remarked, “We believe in our strategy for growth and value creation. Shareholders are encouraged to remain steadfast during this time of corporate activity.” The board will continue to engage with shareholders while implementing its strategic initiatives to enhance performance and stakeholder value.
Motley Fool contributor Lianne Eastty has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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