The softness in the Australian pathology volumes, along with higher costs due to a costly collection centre roll out, caused Sonic to be “prudent” in its guidance of 5 per cent growth in group earnings before interest, tax, depreciation and amortisation in the coming year, he said. “Our guidance for FY15 might had been a little higher had we not been a bit conservative on Australian pathology,” he said.
The US pathology business, which accounts for 21 per cent of revenue, had volume growth of 2. 2 per cent, but revenue growth was flat. “[This] was consistent with our major competitors in the US,” he said. “Our average fee… came down a bit largely due to cuts in Medicare fees which represent about 22 per cent of our revenue in the US.
The result missed the consensus of $392. 3 million, but was up from $335 million in the same period last year. EBITDA rose 5. 4 per cent to $681. 5 million, which met guidance of 5 per cent growth. Revenue rose 12. 3 per cent, also in line with consensus.
Read more here: SMH