Healius- Performance so bad company considers rebranding to Primary Healthcare.
"NON-UNDERLYING COSTS" UNDERLYING THE VALUE DESTRUCTION
Every major cost program — Project Leapfrog, SIP, digital transformation has been classified as non-underlying for years, masking the true cost base. The gap between reported and underlying EPS has been persistent and widening.
These cost-out programs have failed (Project Leapfrog, SIP Phase 1 & 2, Cost Reset, T27) each costing A$80–150M have delivered no discenible benefit. EBIT margins declined ~820bps from FY16 to FY24.
STRATEGY WHIPLASH:
Three CEOs in five years: Parmenter (departed Dec 2022) → Jaquet (resigned Mar 2024, 15 months) → Anderson (current). Each transition triggered a new strategic review and another new cost-out program.
The company acquired Day Hospitals as a growth strategy in 2018 (via equity raising), then sold them in 2022 as non-core. It divested Medical Centres, then Imaging, and is now selling Agilex. Goodwill reached a peak of $2.34B all while margins & profits declined.
No doubt paying monstrous fees to advisors on this pitiful journey to a smaller earnings base, more debt and less strategic optionality.
Have your say..
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CSL - What is going on? Have your say
CSL - Will Gordon stay on as CEO?
CSL - Should Brian go?
CSL - Is that the bottom?
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