Sonic Healthcare maintains dividend as annual profit edges higher

21st August 2025 06:28

(Alliance News) - Sonic Healthcare Ltd shares fell on Thursday despite the company reporting a slight increase in profit in financial year 2025, in line with guidance.

The Sydney-based medical diagnostics company said attributable net profit increased 0.5% to AUD513.6 million, approximately USD329.8 million, in the year ended June 30 from AUD511.1 million a year earlier. Diluted earnings per share fell to 106.7 Australian cents from 107.2 cents.

Sonic Healthcare shares were down 14% at AUD24.78 in Sydney on Thursday afternoon.

Revenue grew 7.6% to AUD9.65 billion from AUD8.97 billion.

The company maintained its final dividend at AUD0.63, while the total dividend grew 2.3% to AUD1.07 from AUD1.06.

Chief Executive Officer Colin Goldschmidt said: "Sonic Healthcare’s businesses performed strongly during the 2025 financial year, with the group achieving 5% organic revenue growth and 40 basis points of margin expansion on a normalised basis. Having achieved our earnings guidance range for the 2025 financial year, Sonic’s management teams globally are now acutely focussed on meeting expectations for 2026 by driving organic growth, tightly controlling costs, and progressing the many workstreams required to further realise the synergies we expect from the significant acquisitions we have made in Switzerland, Germany and the USA, including the most recent acquisitions of the LADR Laboratory Group and Cairo Diagnostics."

Labour and related costs rose 7.3% to AUD4.70 billion from AUD4.38 billion, while other expenses from ordinary activities increased 9.9% to AUD1.17 billion from AUD1.07 billion.

In financial year 2026, Sonic expects to report earnings before interest, tax, depreciation and amortisation between AUD1.87 billion to AUD1.95 billion on a constant currency basis, up from AUD1.72 billion in financial year 2025.

By Elijah Dale, Alliance News senior reporter Asia-Pacific

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