Sonic's COVID-19 testing helps FY profit

·1-min read

Health giant Sonic Healthcare has forecast plenty more revenue from COVID-19 testing after a whopping full-year profit.

The company on Monday explained that revenue from coronavirus testing played a notable part in a 149 per cent increase in net profit after tax to $1.3 billion.

Sonic leaders said they expected significant coronavirus testing revenue to continue as the Delta variant spreads around the world.

The laboratory services provider operates in Australia, Europe and the US.

Workers are also injecting vaccines in the arms of many. The company is Australia's biggest non-government provider of COVID-19 vaccination.

Yet Sonic would not forecast earnings for this financial year, due to the unpredictability of the pandemic.

The company said the progress of the pandemic could affect testing revenue, as well as its base services.

Chief executive Dr Colin Goldschmidt was keen to point out the improved revenue was not only due to the pandemic.

Sonic's usual diagnostic services such as radiography and pathology improved their revenue by six per cent.

The company is evaluating takeover opportunities.

It is completing the purchase of Canberra Imaging Group, which has revenue of about $60 million.

In March, Sonic took an 80 per cent stake in Melbourne-based Epworth Medical Imaging.

Shareholders will receive a final dividend of 55 cents per share, 65 per cent franked. This payment is higher than the previous final dividend of four cents per share, 30 per cent franked.

The performance was not enough for investors, who sent shares lower by 2.66 per cent to $41.69 at 1342 AEST.

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