Half Year 2025 Apiam Animal Health Ltd Earnings Call Transcript
Key Points
- Apiam Animal Health Ltd (ASX:AHX) reported a revenue increase of 1.7% to $106.2 million, showcasing resilience in its diversified portfolio.
- The intensive animal vet services segment saw a significant revenue growth of 15%, driven by strong performance in the beef feedlot and pig industries.
- Cost management efforts resulted in operating expenses tracking in line with the prior period, with a 3.1% reduction in like-for-like OpEx across clinical vet services.
- The company is actively managing its portfolio by divesting underperforming assets, which is expected to increase EBITDA by $1 million despite a revenue decrease.
- Apiam Animal Health Ltd (ASX:AHX) is leveraging AI and technology to enhance operational efficiencies and customer engagement, showing promising early results in driving volumes.
- The reported net loss of $1.5 million was impacted by a $4.5 million impairment charge related to the divestment of underperforming clinics.
- Clinical vet services revenue was down 1.7%, affected by a significant reduction in ACE Laboratory diagnostic revenues due to halted exports to China.
- Equine clinic revenues declined by 11.5% due to softening in equine markets and reduced horse breeding activities.
- The company faces challenges in the companion animal veterinary services segment, with industry revenue down approximately 7% due to cost-of-living pressures.
- Apiam Animal Health Ltd (ASX:AHX) still has four Greenfield clinics that are currently loss-making, impacting overall profitability.
Apiam Animal Health first half results call for 2025, results. I'm Chris Richards, managing director, and today I'll be joined by, Matt White, who's our CFO.
Let's start off with just a summary on the results, and you can see from the results they're very consistent with what we reported at our AGM in in late November. Although we did have a stronger, a strong revenue in December.
A revenue of $106.2 million was, up 1.7% on the prior comparative year. Gross profit was, up 0.1%, mainly due to the contribution of the intensive animals, which is, at a lower margin. I'll talk to that later.
Our, underlying, EBITDA pre-ASB 16 of $10.8 million, was, relatively in line with the prior comparative, period. Our MPAA, underlying MPAA of $3.9 million was 15.5%. That'll talked to that a little bit later in relation to the impact of our right of use depreciation interest that had an impact on that.
The reported NAT of, was negative $1.5 million, and that was, because of an impairment that we've
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