Bendigo,
A summary of the Company's FY23 audited financial results are provided in the link below*. These are in-line with Apiam's trading update lodged with the ASX on
Apiam's revenue in FY23 remained resilient growing 22.6% on a reported basis and was driven by growth in the Company's dairy & mixed animal segment which accounted for 77% of Apiam's revenues in FY23. This segment delivered like-for-like (LFL) revenue growth of 4.9% in FY23 and 6.4% in H2 FY23, vs the prior corresponding period (pcp).
The Company's beef feedlot and pig segment continued to operate in a challenging industry environment, with segment LFL revenue falling (4.1)% in FY23. Revenue generated in the feedlot segment was lower than the previous year due to reduced feeder steer inductions and improved health outcomes. The pig segment delivered 5.0% revenue growth in H2 FY23 (vs pcp) off the back of industry expansion and recovery in pig numbers from the Japanese encephalitis impacts of 2022.
Apiam's earnings performance in FY23 was impacted by growth in wage costs (which increased 8.7% on a LFL basis in the dairy & mixed segment), reflecting the recruitment of higher skill-set veterinarians in H1 FY23, the broader inflationary environment as well as the full year impact of the business support required following the accelerated acquisition program that occurred throughout FY21-FY22. Apiam's business support network costs declined 1.9% in H2 FY23 (vs H1 FY23) as the rate and the scale of the acquisition program slowed in this period.
Rising interest rates over the past 12 months, as well as increased borrowings to fund strategic acquisitions in H1 FY23, has increased Apiam's finance costs in FY23 to
Additionally, Apiam's reported NPAT has been impacted by a one-off provision for inventory, which is reflected as a
Cost-saving redundancy & restructuring initiatives
In
This program is expected to result in a reduction to Apiam's wage expenses of approximately
Management continue to work with several dairy and mixed animal clinics around optimisation of staff rostering and achievement of greater operating cost efficiencies to improve their financial contribution to the Group.
New acquisitions & greenfield clinics
In Q4 FY23, Apiam completed the acquisition of
Apiam acquired
In addition, Apiam opened two new greenfield clinics in Q4 FY23 - in the regional hubs of Yarrawonga (VIC) and Caboolture (QLD). Both clinics have been performing strongly since commencement of trading and have been targeted to meet the needs of a growing pet care market in these regional growth corridors.
Apiam extends debt facilities with NAB
Apiam is pleased to announce that its long-standing financier,
Outlook
Apiam remains confident in the resilient nature of its business model. The expansion over the past three years into the non-cyclical dairy & mixed animal segment is expected to deliver sustainable revenue outcomes in the year ahead.
The Company expects to also deliver improved operating earnings margins in FY24 as the benefits of its cost-saving redundancy & restructuring program takes effect from
*To view the FY23 audited financial results, please visit:
https://abnnewswire.net/lnk/8KQ8LN69
To view the Results Presentation, please visit:
https://www.abnnewswire.net/lnk/63QVPOQH
To view the Annual Report, please visit:
https://www.abnnewswire.net/lnk/VQG46MVL
About
Contact:
Dr
Managing Director
E: chris@apiam.com.au
Investor Relations
E: catherine.ross@apiam.com.au
T: 0421 997 481
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