24 Jan 2020

Oceania Healthcare half-year profit rises

10:31 am on 24 January 2020

A lift in sales and higher income from aged care services have lifted the half-year profit of the country's third largest rest home operator.

Nurse serving food in rest home for elderly.

Photo: 123RF

Oceania Healthcare has reported a net profit of $14.8 million for the six months ended November compared with last year's $1.3m.

The underlying profit, which excludes one-off costs and valuations changes, was $24.1m, up 18 percent on a year ago.

"The first half of the financial year reflects the strong sales momentum at our two new Auckland Villages ... as well as continued strong demand for our new premium care suites

across the country," chief executive Earl Gasparich said.

He said the company was on track to deliver its target of 265 aged care beds and retirement units in the year to May, and this would drive future earnings.

Oceania has just opened two new villages in Auckland, which he company expects to drive the coming year's earnings.

Revenue increased nearly 2 percent to $98m, while its occupancy rate increased slightly.

The company, as with other retirement village operators, is offering more specialist aged healthcare services and facilities, which earn more.

"We are very pleased with the execution of our aged care strategy and the revenue streams being generated from our new care suites," Gasparich said.

Oceania has a total of 3,804 beds, units, and villas at 44 sites around the country, with another 1360 in the pipeline.