BREAKING: Ryman Healthcare, a Christchurch-based retirement home operator, has just announced its first positive free cash flow in a decade, marking a significant milestone in its financial recovery. The company reported $NZ56.2 million ($A49.1 million) in free cash flow for the six-month period ending September 30, 2023, a remarkable turnaround from a negative $NZ52.5 million ($45.9 million) in the previous half.
Despite this encouraging news, Ryman still posted a net loss after tax of $NZ45.2 million ($A39.5 million), down from a $NZ82 million ($A71.7 million) profit last year, which was largely inflated by property revaluations. The company’s revenue surged by 13 percent to $NZ413.8 million ($361.8 million), while costs fell by 2 percent.
CEO Naomi James stated, “The business has stabilised, momentum is returning, and we are delivering results with meaningful progress achieved against FY26 priorities.” This progress follows a significant $NZ1 billion equity raising in February and a refinancing of its $NZ2 billion bank facilities earlier this month.
Ryman Healthcare, which operates 40 retirement villages in New Zealand and nine in Melbourne, listed on the Australian Stock Exchange on October 1 and continues to hold its primary listing in New Zealand. As of September 30, the company reported $NZ1.65 billion ($A1.44 billion) in net debt, a slight reduction of $14.1 million ($12.3 million) from the previous six months.
The company sold 674 units in the first half of the year, an increase from 452 in the prior half, although this figure is still below the more than 800 units sold in earlier halves. Ryman noted that local property markets are recovering at varying speeds, with Victoria showing stronger growth compared to regional New Zealand and Auckland, which has yet to demonstrate significant improvement.
In response to market conditions, Ryman has reduced its development activity, cutting its projects under development from seven to four sites. Ryman’s ASX-listed shares rose by 2.4 percent to $2.57 near noon, reflecting a total gain of 12.7 percent since its debut.
As Ryman Healthcare navigates these changes, all eyes will be on how the firm continues to adapt to the evolving retirement living market and whether it can maintain this positive momentum.
