ParagonCare Ltd. reported FY26 underlying revenue growth of 6.7% to $3.7 billion, driven by acquisitions and organic expansion, even as statutory net profit fell to a $16 million loss from a $20.6 million profit a year earlier.
The healthcare services group said underlying EBITDA rose 7.4% to $97.2 million, while underlying net profit after tax declined 13.6% to $26 million. Statutory EBITDA dropped 42.6% to $50.8 million. Cash flow from operations surged 89.4% to $65.8 million, supported by a $7.3 million tax refund and improved working capital management.
CEO Carmen Riley and CFO Brendon Pentland highlighted the completion of the company’s 3-2-1 transformation strategy, which included integrating six acquisitions totaling $51.4 million and realizing targeted operational synergies. The group’s return on invested capital improved to 14.6% from 13.2%, while net debt stood at $284.1 million, or 2.5x underlying EBITDA on a proforma basis.
Segment performance showed mixed trends. Medical technology revenue grew 21.4% to $329 million, with contract logistics revenue up 47% and margins expanding to 4.3%. However, the Australia & New Zealand wholesale channel, which accounts for the bulk of revenue at $2.8 billion, saw normalized growth of just 1.5%, with margins improving slightly to 6.3%. The Asia medical technology segment surged 58% to $160.1 million, though adverse foreign exchange effects offset some gains.
Management noted that organic growth contributed $229.9 million to revenue, while acquisitions added $61.3 million. Offsetting factors included the exit from Infinity Group, the termination of the Ramsay contract, and a decline in COVID-19 drug sales, partially offset by growth in GLP-1 medications. The stronger Australian dollar also weighed on reported figures.
Shares fell 3.57% to $0.135, near the 52-week low of $0.125, as investors weighed the net loss against underlying improvements. Riley reiterated the company’s commitment to reducing the number of shares in issue, citing an undervalued share price.
