Healius Limited (ASX:HLS) Announces Half Year Results
Financial Performance
Healius Limited reported a 10.0% increase in group revenue to $933.9 million for the first half of 2025, compared to $849.0 million in the previous corresponding period. Underlying EBIT surged 51.0% to $23.7 million, while underlying EBITDA rose 3.3% to $164.4 million.
Pathology Performance
Pathology revenue, excluding Agilex, grew by 7.0% to $641.7 million from $600.0 million. EBITDA was $111.2 million, a decrease of 3.6% from the previous corresponding period, while EBIT increased by 2.3% to $4.1 million. Operational improvements included volume growth driven by GP attendances and referrals, and growth in Genomic Diagnostics.
Lumus Imaging Sale
Healius announced the sale of Lumus Imaging to Affinity Equity Partners for an enterprise value of $965 million, with net proceeds exceeding $800 million. The sale is expected to complete in the second half of 2025, subject to certain conditions, most of which have been satisfied. Proceeds will be used to reduce debt, support strategic execution in Pathology, and return cash to shareholders.
Debt Management
The company reported a net debt of $345.3 million as of 31 December 2024, with gearing at 3.8x and interest cover at 3.3x. Healius aims to refinance borrowing facilities upon completion of the Lumus Imaging sale to significantly reduce debt and maintain gearing and interest cover within bank covenants.
Outlook
Healius expects continued growth in Pathology and recovery in AgilexBiolabs in the second half of FY25. The sale of Lumus Imaging is anticipated to complete in 2H25, with proceeds aiding capital reduction and shareholder returns. An Investor Day is planned for 27 March 2025 to discuss strategy and transformation progress.
Motley Fool contributor Abbie Stokes 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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