Eight months after electing to maintain its investment in residential aged care, Australian Unity’s decision appears to be vindicated.
The group had announced a review of its aged care operations in February 2023 and was widely tipped to be walking away from residential care, before revealing in July that it would stay in the sector.
Specialist Care - residential aged care
Australian Unity’s Specialist Care division has recorded revenue of $101.3 million in its 1H FY24 result, representing an increase of 27.6% on the previous corresponding period (PCP).
In total, its 12 aged care homes across NSW, Victoria and Queensland recorded an adjusted EBITDA of $19.9 million or an increase of 476.9% on the PCP, which Australian Unity attributed to “strong revenue growth and effective cost management”.
The group also cut its agency staff spend to just $700,000 from $4.9 million in the PCP.
Occupancy levels in Australian Unity’s 10 mature homes was an average of 97.2%, up from 97% as of 30 June 2023.
“In the half-year under review, the Group implemented initiatives and adjusted operations in pursuit of long-term strategies of developing a commercially sustainable portfolio that creates and sustains member, customer and community value in the area of wellbeing,” said Rohan Mead, Australian Unity’s Group Managing Director.
SATURDAY: Prue Bowden, Group Executive | Home Health: Australian Unity
Home Health - home care
In the Home Health business, revenue increased 18.3% from the PCP to $240.1 million. However, EBITDA was down slightly 12.7% on the PCP to $16 million, owing in part to $8.7 million in transformation expenses, including changes to business processes and technology, and higher wage costs after the Fair Work Commission's 15% pay rise.
Total Home Care Packages under management increased by 127 in the six-month period to 10,912, despite a slowing in the release of Home Care Packages.
As we reported last month, Australian Unity announced the acquisition of For Profit national home care provider myHomecare Group, subject to ACCC clearance, which should take the group to 50,000 CHSP and home care customers.
