Bendigo,
Apiam's revenue in FY23 remained resilient 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 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. While revenue generated in the feedlot segment was back on the previous year due to lower feeder steer inductions and improved health outcomes, pleasingly the pig segment delivered 5.0% revenue growth in H2 FY23 (vs pcp).
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.
Rising interest rates over the past 12 months, as well as increased borrowings to fund strategic acquisitions in H1 FY23, has increased Apiam's interest expense in FY23 to
Cost-saving redundancy & restructuring initiatives
In
This program is expected to result in a reduction to Apiam's wage expenses of approximately
Additional cost synergies are expected as Management continue to work with several Apiam clinics around optimisation of staff rostering and achievement of greater operating cost efficiencies. New acquisitions & greenfield clinics
In Q4 FY23, Apiam completed the acquisition of two regional companion animal clinics in targeted high-growth locations. Boyne Tannum Vet Surgery, a full-service companion animal clinic located in
Apiam also 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,
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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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