• On track to achieve full-year earnings guidance
• Strong organic revenue growth of 6.1%
• EBITDA margin up 60 bps, 90 bps excluding recent acquisitions
• Interim dividend of $0.44 per share, up 2.3% on prior year

Sonic Healthcare Limited reported strong financial and operational results for the half-year ended 31 December 2024. Revenue grew 8% to A$4,669 million, EBITDA increased 12% to A$827 million, and net profit rose 17% to A$237 million. The company's organic revenue growth was 6.1%, and EBITDA margin expanded by 60 basis points, or 90 basis points excluding the impact of recent acquisitions. Sonic Healthcare's cost control programs, particularly in labour, drove the margin expansion, with labour costs as a percentage of revenue reduced by 50 basis points. The company's cash generation remained robust, with 103% conversion of EBITDA to gross operating cash flow. Sonic Healthcare maintained its FY 2025 EBITDA guidance of A$1.70 - 1.75 billion, reflecting up to 10% growth on FY 2024 (excluding the gain from the sale of the West Division in the USA). The company also announced an interim dividend of $0.44 per share, up 2.3% on the prior year, as part of its progressive dividend strategy. Sonic Healthcare's operations in its key markets, including Australia, the USA, Germany, Switzerland, and the UK, all performed well, with strong organic growth and margin expansion. The company also announced the acquisition of the LADR Laboratory Group in Germany, a major growth milestone that is expected to be immediately earnings per share accretive and deliver a strong post-synergy return on investment. Looking ahead, Sonic Healthcare expects ongoing strong organic revenue growth, continued operational leverage and margin expansion, the realization of synergies from recent acquisitions, and further acquisition and contract opportunities to drive earnings growth beyond FY 2025.

Sonic Healthcare's FY 2025 EBITDA guidance is A$1.70 - 1.75 billion (constant currency), reflecting up to ~10% EBITDA growth on FY 2024 (excluding the gain from the sale of the West Division in the USA). Depreciation expense is expected to be similar to FY 2024 as a percentage of revenue, and interest expense is expected to increase by ~25% (constant currency) due to acquisitions completed in FY 2024. The effective tax rate is expected to be 26-27%.

Sonic Healthcare expects ongoing strong organic revenue growth driven by its market-leading brands and Medical Leadership culture, continued operational leverage and margin expansion through tight cost control, the realization of majority synergies from acquisitions made in FY 2024 and FY 2025, an uplift in revenue in the USA from an enhanced revenue collection system, and the addition of the LADR Laboratory Group in Germany. The company also expects to benefit from annual fee indexation in various markets and further acquisition and contract opportunities.