Ryman Healthcare Ltd (RHCGF) (H1 2025) Earnings Call Highlights: Navigating Challenges with ...

In This Article:

  • Net Profit Before Tax and Fair Value Movements: Loss of $79.8 million, down $17.8 million from the prior half.

  • Cash Flow from Existing Operations: Negative $7.8 million, down $24.8 million from the first half of '24.

  • Cash Flow from Developments: Negative $44.7 million, improved by $132 million compared to the first half of '24.

  • Retirement Village Units: Over 9,500 units.

  • Aged Care Beds: Over 4,600 beds.

  • Retirement Unit Occupancy: Averaged 87.9% for the period.

  • Aged Care Occupancy: 91.7% across the portfolio, with mature centers at 96%.

  • Gross Resale Margin: 26.6%, down 3 points from last year.

  • Debt: Increased by $50 million to $2.56 billion at the half year.

  • Interest Coverage Ratio: Reported at 1.7 times for September '24.

  • Revenue from Aged Care: Up 13% to $240.7 million.

  • Employee Costs: Increased by 12% to $247.3 million.

  • Interest Costs: Increased by $10.8 million to $92.9 million.

  • Free Cash Flow: Negative $52.5 million, an improvement of $107.7 million from the first half of '24.

  • Capital Expenditure Guidance: Expected to be $625 million to $675 million, down from previous guidance.

Release Date: November 27, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Ryman Healthcare Ltd (RHCGF) achieved record settlements of 827 ORAs and $651 million in gross receipts, marking the highest level in the last three years.

  • The company delivered 667 retirement units and aged care beds in the first half, including significant new facilities in New Zealand.

  • Ryman Healthcare Ltd (RHCGF) has implemented a new pricing structure for RV units, which is expected to create significant long-term value for shareholders.

  • The company has achieved $18 million in annualized savings in non-village operating expenses, with a target to achieve similar savings by the end of FY26.

  • Ryman Healthcare Ltd (RHCGF) maintains a strong brand reputation, being acknowledged as best in class across three separate cohorts in New Zealand.

Negative Points

  • Ryman Healthcare Ltd (RHCGF) reported a net loss before tax and fair value movements of $79.8 million, down $17.8 million from the prior half.

  • Cash flow from existing operations was negative at $7.8 million, a decrease of $24.8 million compared to the first half of '24.

  • The company's debt increased by $50 million to $2.56 billion, with gearing remaining above the target range of 30% to 35%.

  • Occupancy rates for aged care and retirement units have slightly decreased, with aged care occupancy at 91.7% and retirement unit occupancy at 87.9%.

  • Ryman Healthcare Ltd (RHCGF) has not declared a dividend for this period, with plans to review the dividend policy in FY26.