Sonic Healthcare profits hit by pandemic and ‘fear of infection’

Sonic Healthcare says full-year profits fell because patients stayed away due to COVID restrictions and infection worries.

Sonic Healthcare reported a big drop in patients as the pandemic struck. Picture: Bloomberg

Pathology giant Sonic Healthcare has unveiled 4 per cent drop in full-year profit after patient numbers plunged because of COVID-19 restrictions and infection worries.

Net profit attributable to members fell 4 per cent to $527.7 million for the full-year through June.

“After reporting a strong first half, Sonic’s financial results for the 2020 financial year were impacted by dramatic falls in base business patient volumes from mid-March through May 2020, caused by social restrictions and fear of infection,” said chief executive Colin Goldschmidt.

“Fortunately, our base business volumes had largely recovered by June 30, 2020, and COVID-19 testing volumes ramped up through the period, providing a partial offset.

“This enabled us to report modest earnings growth for the year, and to maintain our final dividend at the prior year level.”

As sales collapsed because of the COVID-19 pandemic, Sonic cut the pay of its directors and a number of its senior executives by 50 per cent.

Still, the company declared a final dividend of 51c per share, in line with last year.

Sonic said that while it would not provide a guidance, revenue growth rates had been substantially higher than historical rates through July and August.

“Sonic Healthcare remains positioned for future growth, with well established brands, leading market positions, our embedded Medical Leadership culture, and a strong balance sheet underpinning our global operations,” Dr Goldschmidt said.

“We continue to target organic revenue growth, as well as synergistic acquisitions, joint ventures, and contract opportunities.”