ParagonCare Reports $3.61B Revenue, $95.2M EBITDA in FY25
Paragon Care Limited reported solid FY25 results with revenue climbing to $3.61 billion and underlying EBITDA rising 3%, driven by successful integration and expansion into new healthcare segments.
- Revenue up 8.3% to $3.61 billion
- Underlying EBITDA increased 3% to $95.2 million
- Underlying NPAT rose 9.5% to $31.2 million
- New Aesthetics, Dental, and Robotics business units launched
- Refinancing executed with improved funding terms
Strong Financial Performance Amid Integration
Paragon Care Limited (ASX, PGC) has delivered a robust set of full-year results for FY25, reporting an 8.3% increase in revenue to $3.61 billion and a 3% rise in underlying EBITDA to $95.2 million. This performance reflects the first full year of operations following the merger with CH2 Holdings and the integration of Oborne, marking a significant milestone in the company’s growth trajectory.
Underlying net profit after tax (NPAT), excluding amortisation and one-off costs, climbed 9.5% to $31.2 million, underscoring the company’s ability to translate top-line growth into improved profitability despite ongoing integration expenses.
Expansion into New Healthcare Segments
ParagonCare has strategically diversified its portfolio by launching new business units in Aesthetics, Dental, and Robotics. The Aesthetics division, particularly strong in Asia, grew by 28% year-on-year, contributing over $68 million in sales. The Dental division’s recent launch, supported by the acquisition of AHP Dental & Medical, aims to leverage existing customer networks to drive future growth. Meanwhile, the Robotics business is positioned to capitalize on emerging opportunities in surgical technology, with product launches expected to gain momentum in FY26.
Operational Highlights and Refinancing
The company’s four sales channels, Wholesale, Medical Technology, Contract Logistics, and Clinical Manufacturing, each showed positive momentum. Wholesale sales grew 8%, with pharmacy sales up 11.6%, outpacing market growth. Contract Logistics surged 25%, bolstered by a new large-scale contract with Owens and Minor. Despite some headwinds in hospital capital spending and orthopaedics, the overall operational performance remained solid.
ParagonCare also executed a refinancing arrangement with Scottish Pacific Business Finance, securing $400 million in facilities with improved terms, including no financial covenants and a lower cost of funds, which will support ongoing investment and working capital needs.
Integration Progress and Outlook
The integration of ParagonCare, Oborne, and CH2 is progressing with a cautious, phased approach. While IT integration timelines have been extended to ensure robustness, the company achieved $5 million in synergy benefits in FY25 and targets $12 million in FY26. Management remains confident in delivering further efficiencies and growth through operational simplification and investment in business intelligence.
Looking ahead, ParagonCare expects revenue growth to continue at FY25 rates, with profitability improving as synergies are fully realised. The company is also focused on expanding its M&A pipeline, particularly in Asia, and investing in organic growth opportunities across its new business units. No dividends were declared in FY25 as cash is preserved for these strategic initiatives, with a dividend policy review planned for FY26.
CEO Carmen Riley highlighted the cultural and operational challenges overcome during the merger and expressed optimism about the company’s future as a leading healthcare provider in the Asia Pacific region.
Bottom Line?
ParagonCare’s FY25 results set a solid foundation for growth, but investors will watch closely as integration efforts and new ventures unfold in FY26.
Questions in the middle?
- How quickly will ParagonCare realise the full $12 million synergy target in FY26?
- What impact will the new Dental and Robotics divisions have on overall profitability?
- How will the company manage elevated working capital and debt levels amid ongoing expansion?
