Estia Health has released its half year results, showing increasing revenue and an improvement in operating profit.
The publicly listed aged care provider also announced it has acquired Mount Clear aged care facility in Ballarat. This comes less than six months after Estia Health acquired four aged care homes from Premier Health Care.
In the six months to 31 December 2022, Estia Health recorded revenue of $359.2 million, a 9% increase from the previous period, driven by higher occupancy and increased capacity.
EBITDA on mature homes rose from a loss of $2.9 million to a profit of $26.5 million.
However, overall, Estia Health reported a loss of $25.3 million, an improvement on the $44.3 million loss reported in the previous six-month period.
The group paid a 3.7 cps fully franked interim dividend.
Other highlights are as follows:
- Covid costs fell by more than half to $16.3 million, from $38.3 million. Estia noted that Government grants to cover Covid expenses are seven months behind. Estia Health has $31.4 million in unprocessed grant submissions with the Government.
- Occupancy is at 91.9%, although excluding Victoria the rate is 94.6%. Occupancy for new homes opened in the last three years is consistently at or close to 100%.
- Nearly all – 98% - of Estia Health’s aged care homes achieved three stars or higher, compared with 90% for the sector.
- In July to September 2022, 46% of regulator visits resulted in unmet outcomes.
- Staff turnover as at December 2022 was 29.8%.
AN-ACC is contributing to “positive momentum” into the second half in the lead up to the introduction of mandated care minutes, Estia Health noted.
Estia Health CEO Sean Bilton said, “As the financial impact of COVID-19 eases, the positive momentum we outlined at the AGM has been sustained across most key metrics, despite workforce challenges persisting across both the sector and broader economy.
“The further key reforms introduced during the six months to December 2022, including the new AN-ACC funding mechanism, star ratings and the worker code of conduct, have all been successfully implemented by the Group.
“Two major elements of the Government’s planned reform agenda remain - mandated care minutes and the Independent Hospital and Aged Care Pricing Authority’s (IHACPA) work, each of which are significant factors in the outlook for earnings in the sector beyond FY23.
“I am pleased that after the challenges of recent years, the improvement in earnings, particularly in the second quarter, and a strong cash position has allowed us to reinstate dividends.”
Estia Health operates 72 aged care homes, and has more than 8,000 residents and 7,800 employees.
