Australian Clinical Labs Ltd

ACL: XASX (AUS)
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ACL Earnings: Shares Undervalued as Margins Recover

No-moat ACL’s fiscal 2024 group revenue of AUD 696 million was flat on last year while underlying EBIT fell 4% to AUD 63 million. Both were in line with our expectations and were largely due to higher-margin coronavirus testing revenue falling 59%. The second-half group underlying EBIT was up a strong 67% to AUD 39 million on the first half, with significant improvement in profitability as operational efficiency initiatives helped offset rent and wage inflation.

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