Pro Medicus Limited (ASX: PME) shares are on the move on Wednesday morning.
At the time of writing, the health imaging technology company's shares are up 4% to $136.86.
This follows the release of the company's full year results before the market open.
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Pro Medicus shares jump amid further strong growth
- Revenue up 29.3% to $161.5 million
- Underlying profit before tax up 35.3% to $116.5 million
- Net profit up 36.5% to $82.8 million
- Fully franked final dividend of 22 cents per share
What happened in FY 2024?
For the 12 months ended 30 June, Pro Medicus continued its long run of explosive growth, reporting a 29.3% lift in revenue to $161.5 million.
This was driven by increased revenue from North America (up 34.4%) and Australia up (5.9%), which offset a 6.7% decline in European revenue. The latter reflects one-off revenue from a sale to a German hospital in the prior corresponding period.
Also heading in the right direction was Pro Medicus' underlying EBIT margin, which expanded to 69.5% (from 67.2%).
Commenting on its margins, Pro Medicus' CEO, Dr Sam Hupert, said:
Our margins are industry leading and have been for many years. This is a testament to the scalability and high operating leverage of our offering.
This ultimately led to the company's profits growing at an even quicker rate than its revenue. Underlying profit before tax lifted 35.3% to $116.5 million and net profit grew 36.5% to $82.8 million in FY 2024.
This allowed the Pro Medicus board to increase its fully franked final dividend by 29.5% to 22 cents per share. And for the full year, the company is paying a dividend of 40 cents per share, which is up 33% from 30 cents per share in FY 2023.
How does this compare to expectations?
Pro Medicus shares are lifting today after its result came in ahead of the market's expectations. The consensus estimate was for revenue of $161.1 million and net profit after tax of $80 million.
Whereas the company achieved revenue of $161.5 million and net profit after tax of $82.8 million.
Management commentary
Dr Hupert was very pleased with the company's record result. He said:
All our key metrics moved in the right direction during the year. We won nine contracts, with a minimum total contract value of $245m, ranging from boutique opportunities such as the Florida-based Nicklaus Children's Hospital through to our biggest sale to date in Baylor, Scott and White the largest not for profit in the state of Texas.
Looking ahead, Dr Hupert notes that Pro Medicus still has a significant growth runway. He adds:
As we have demonstrated, our solution can work across all segments of the market, from a two-person radiology practice in Melbourne all the way to the largest, most sophisticated healthcare enterprises in the US such as Mayo Clinic. We have a bit over 7% of the total addressable market (TAM) in the US and growing, so there is still a huge amount of runway ahead of us.
