NIB net profit beats expectations

By Trevor Hoey. Published at Aug 20, 2018, in Features

Name: NIB Holdings Ltd (ASX:NHF)

Market Capitalisation: $3 billion

Opening Share Price: $6.59

NIB Holdings (ASX:NHF) has reported a full year underlying operating profit of $184.81 million for the 12 months to 30 June 2018, an increase of more than 20% on the previous financial year.

Net profit after tax (NPAT) grew 11.1% to $133.5 million and statutory earnings per share by 8.0% to 29.4 cents per share.

The net profit of $133.5 million was ahead of consensus forecasts of $128 million and the full year dividend of 20 cents per share was broadly in line with analyst’s expectations.

Management said that the company was experiencing ongoing solid growth across its businesses.

In particular, management pointed to its Australian resident’s health insurance business which, on the back of organic growth and the October 2017 acquisition of GU Health, generated growth of 12.1% premium revenue to $1.9 billion.

On the score of organic growth, the group outperformed the industry average and margins in the Australian resident business were higher than the company had targeted due to lower claims inflation relative to historic levels.

NIB is targeting operating profit of at least $159 million in 2019, implying year-on-year growth of nearly 20%.

Note that any decision with regards to adding this stock to your portfolio should be taken with caution and professional financial advice sought.

S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

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