Sonic Healthcare Cuts Fiscal Year 2024 Guidance

By Alice Uribe

SYDNEY--Sonic Healthcare has cut guidance for fiscal 2024 amid lower-than-expected profit growth driven partly by inflationary pressures on the business.

Sonic on Tuesday said it expected its earnings before interest, tax, depreciation and amortization -- or Ebitda -- for the 12 months through June to be around 1.6 billion Australian dollars ($1.07 billion), with two months' trading outstanding.

The company in February said it was on track to achieve annual guidance, albeit more likely toward the lower end of a forecast range for Ebitda of A$1.7 billion-A$1.8 billion for fiscal 2024.

"Our current robust topline growth, organic and non-organic, in a setting of inflationary cost pressures, have combined to delay the completion of our programs to align labor costs more closely with post-pandemic conditions," said Chief Executive Colin Goldschmidt.

"These unique business conditions have also made forecasting our earnings unusually difficult this year."

Based on preliminary forecasts, on a fiscal 2024 forecast constant currency basis, Sonic expects to achieve Ebitda of approximately A$1.70 billion to A$1.75 billion in fiscal 2025, the company said.

Write to Alice Uribe at alice.uribe@wsj.com

(END) Dow Jones Newswires

May 20, 2024 20:01 ET (00:01 GMT)

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