Regis Healthcare Limited (ASX:REG) Reports Strong H1 FY25 Financial Performance
Financial Performance
Regis Healthcare Limited reported revenue of $564.2 million for H1 FY25, marking a 17.5% increase compared to the prior comparable period. Underlying EBITDA rose 30.7% to $68.1 million, while net operating cash flow grew 37.3% to $208.6 million. The company achieved net cash of $179.9 million as of 31 December 2024, up from $16.9 million in H1 FY24.
Operational Highlights
The company’s mature homes achieved an average occupancy rate of 95.7%, up from 93.6% in the prior comparable period. The average overall star rating improved to 3.56 from 3.32 in Q1 FY24. Additionally, average care minutes per resident per day increased to 215.3 minutes in Q2 FY25.
Market Dynamics
Regis Healthcare noted ongoing consolidation in the residential aged care sector, with large providers increasing their market share. The ageing population is expected to drive growth in bed demand, with a significant shortfall in supply over recent years. The company aims to address this through strategic developments and acquisitions.
Key Strategic Priorities
For FY25-FY27, Regis Healthcare focuses on personalised care, quality built environments, financial management, and sustainable business practices. The company is also expanding its Greenfield Development Pipeline with five secured sites, totaling approximately 1,037 beds.
Future Outlook
With an ageing population and stable high occupancy, Regis Healthcare plans strategic capex investments to improve occupancy and support higher room prices. The company is also advancing its M&A activities and greenfield developments to sustain growth.
Motley Fool contributor Kiarra Jackson 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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