Oceania Healthcare (ASX:OCA) Reports FY25 Results and Strategic Initiatives
Financial Performance
Oceania Healthcare reported a total comprehensive income of NZD$74.6m for FY25, up from $70.5m in FY24. Underlying EBITDA increased by 4.1% to $86.0m, while underlying NPAT was $52.5m, a 15.5% decrease from the previous year. Operating cashflow rose to $110.3m, and total assets grew to $2.9b. Debt gearing reduced to 36.3%, and realised capital gains increased by 22.6% to $83.2m.
Operational Achievements
Sales volumes grew by 9.2%, driven by a 17.2% increase in new sales and a 5.3% rise in resales. Occupancy at The Helier in Auckland reached 41%, and The Bellevue in Christchurch was fully sold down within 24 months. A business optimisation programme is targeting $15m to $20m in cost savings by FY27.
Strategic Direction
The Board approved a new five-year strategic direction focused on Connected Care, Inspired Living, Empowered People, and Purposeful Impact. This strategy aims to support and empower people to live well as they age, aligning with changing resident expectations and increasing care needs.
Executive Comments
Chair Liz Coutts noted that undrawn net debt headroom was $97.0m and gearing reduced to 36.3%, reflecting continued capital discipline and a targeted cost optimisation programme.
CEO Suzanne Dvorak said, “We initiated a right sizing programme in FY25 to reshape the business and align with Oceania’s future strategy.” Ms Dvorak continued, “Building on this, a broader business optimisation programme is underway, targeting $10m to $15m of sustainable annualised savings.”
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