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Green Cross Health Limited (NZX: GXH) REPORTS STRONG HALF YEAR PROFIT OF $9.7M

Friday 26th November 2021

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Listed primary healthcare provider Green Cross Health, the Group behind Unichem and Life Pharmacy, The Doctors and Access Community Health, reported Revenue of $310m in the six months to 30 September 2021, up 12% on the prior period. Net Profit After Tax Attributable to Shareholders of $9.7m represents a 9% increase on the prior period. The Group has supported New Zealand communities throughout the COVID-19 pandemic, continuing to provide its essential services, ramping up swabbing efforts over the COVID-19 surge period from August 2021 and rolling out vaccinations at both pharmacies and medical centres.

Result Summary:

Revenue of $310m, up 12%

Operating Profit (EBIT) of $20.5m, up 14%

Net Profit After Tax Attributable to Shareholders of $9.7m, up 9%

Pharmacy Revenue up 11% and Operating Profit up 9% to $13.3m

Medical Revenue up 12% and Operating Profit up 13% to $5.7m

Community Health Revenue up 14% and Operating Profit up 38% to $2.5m

Group net cash position of $5.9m

Dividend declared of 3.0 cps for the half year ended 30 September 2021.

Green Cross Health Group CEO Rachael Newfield, says, “The performance for the six months to 30 September 2021 reflects an increase in activity across all three divisions. Our COVID-19 response efforts have been a huge focus for our business, and our front-line workers have been pivotal in helping to ensure the country can cope with the strain that COVID-19 places on the healthcare system. As an essential service, our pharmacies and medical centres have remained open to support communities, despite a drop in demand associated with lockdown periods, particularly in Auckland. We have also continued to provide essential homecare services to New Zealand’s most vulnerable, via our Community Health operations. As one of the leading providers of primary healthcare in New Zealand, we’ve been able to ramp up our swabbing efforts to meet the COVID-19 delta surge that arose from August 2021 and move quickly into providing COVID-19 vaccinations to substantially support the Government’s 90% vaccination target.

“Earlier in the year, the quality of Green Cross Health’s primary healthcare services was acknowledged at the New Zealand Primary Healthcare awards, with all three Green Cross Health divisions winning first place awards. These included team members winning the pharmacist of the year and the pharmacy technician of the year awards, one of our medical centres winning an award for its recent extensive refurbishment and winning an excellence in information technology award for our support worker app developed in-house in our Community Health division.

“In addition, we are pleased to have progressed our strategy of acquisitive growth, adding two pharmacies and four medical centres, increasing our shareholding in two pharmacies and one medical centre, plus investing in an online digital health company.

“During the period, we promoted Alison Van Wyk into the newly created role of Chief Operating Officer. This appointment follows the addition of Wayne Woolrich, who joined as General Manager of the Medical division. Alison’s extensive primary healthcare experience, and Wayne’s experience leading Health Hawke’s Bay, adds further depth and expertise to the Green Cross Health management team.”

Outlook and Dividend

Green Cross Health has delivered a positive first half performance, reflecting both increased activity across all divisions and ongoing investment in acquisitions, including $7.2m of acquisition investment during the six-month period.

The Company performs a key role in supporting New Zealand’s COVID-19 response, with 161 pharmacies and 28 medical centres administering COVID-19 vaccinations. Green Cross Health pharmacies currently represent 52% of all pharmacies vaccinating in New Zealand. The network’s role will evolve with booster vaccinations and as further age groups become eligible for the vaccination.

The Board has declared an interim dividend of 3.0cps for the half-year ending 30 September 2021, reflecting the strong half year period and a robust balance sheet that can support both an acceleration of acquisitions and the payment of dividends.

Please see the links below for details

GXH commentary HY to 30 Sept 2021

GXH financial statements HY to 30 Sept 2021

GXH appendix 1 HY to 30 Sept 2021

GXH presentation HY to 30 Sept 2021

GXH dividend HY 30 Sept 2021

Source: Green Cross Health Limited



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