Laboratory and pathology group Sonic Healthcare expects underlying earnings to continue to grow in the year ahead as its Australian operations benefit from cost control.
The company's net profit in the year to June 30 dropped five per cent from the previous year to $428 million, due primarily to the Australian dollar's rise against the US dollar and euro, as Sonic has substantial operations in the US, Germany, Switzerland and the UK.
Excluding the impact of currency movements, its underlying earnings rose 5.3 per cent from the previous year to $889 million, with Germany and Switzerland posting the strongest performance, while its Australian laboratory business returned to earnings growth after several years of weakness.
Chief executive Colin Goldschmidt said Sonic's efforts to manage abnormal cost growth in Australia have taken effect, and the nation's regulatory outlook is now stable.
"We've been extremely busy last year with a bunch of strategies, largely around cost control and cost management," he said.
"So we're now in a very good position to leverage the incredible talent of our team and the infrastructure that we have right around Australia."
Sonic has forecast underlying earnings growth, excluding currency movements, of six to eight per cent in the 2017/18 financial year, excluding any future acquisitions.
Its shares were up 54 cents, or 2.3 per cent, at $23.62 at 1430 AEST.
STRONGER $A WEIGHS ON SONIC'S BOTTOM LINE:
* Full year net profit down 5.2pct to $428m
* Revenue up 1.4pct to $5.1b
* Final dividend up 2 cents to 46 cents, partially franked
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