Pacific Smiles Reports $178m Patient Fees YTD, Reaffirms FY25 Guidance
Pacific Smiles Group reports robust patient fee growth of over 9% year-on-year and reaffirms FY25 guidance, while announcing a CFO change as Genesis Capital solidifies its majority stake.
- Patient fees up 9.2% year-on-year to $178 million year-to-date
- FY25 guidance reaffirmed: patient fees $310m–$318m, underlying EBITDA $31.2m–$34.2m
- Newer dental centres continue to drive growth and profitability
- CFO Matthew Cordingley departs; Martin White appointed Acting CFO
- Genesis Capital increases voting power to 89.18%, maintaining control
Strong Trading Momentum
Pacific Smiles Group Limited (ASX: PSQ) has delivered a solid trading update as of 22 January 2025, reporting patient fees of $178 million year-to-date, marking a 9.2% increase compared to the prior year. This growth is notable not only for its magnitude but also for its consistency across the group’s newer dental centres established between FY2020 and FY2023, which continue to contribute positively to both revenue and profitability.
The company highlights that this uplift is driven by a combination of increased appointment volumes and pricing adjustments, underscoring the resilience of demand for dental services despite broader economic uncertainties. On a like-for-like trading days basis, patient fees rose 8.4%, reflecting genuine underlying growth rather than calendar effects.
Guidance Reaffirmed Amid Positive Outlook
Pacific Smiles has reaffirmed its FY25 guidance issued in November 2024, projecting patient fees between $310 million and $318 million, representing growth of 6.2% to 9.0% over FY24. Underlying EBITDA is expected to range from $31.2 million to $34.2 million, an increase of 10.6% to 21.3%. This guidance signals management’s confidence in the company’s operational execution and market positioning.
The sustained performance of the newer centres is particularly encouraging, suggesting that the company’s expansion strategy is yielding dividends. With no new centres opened in FY24, the growth reflects organic strength rather than acquisition-driven gains.
Leadership Transition in Finance
In a significant leadership update, Pacific Smiles announced the early departure of Chief Financial Officer Matthew Cordingley, whose last day was 24 January 2025. Cordingley’s resignation was initially flagged in August 2024, and the company expressed gratitude for his contributions during his tenure.
Martin White will step in as Acting CFO from 27 January 2025, tasked with steering the company’s financial strategy during a pivotal growth phase. Investors will be watching closely to see how this transition influences financial stewardship and strategic priorities.
Genesis Capital’s Growing Influence
Genesis Capital, through its associate Beam Dental Bidco Pty Ltd, has increased its voting power in Pacific Smiles to 89.18% as of 23 January 2025, up from 88.20% in December 2024. This consolidation of control suggests a strong commitment to the company’s growth trajectory.
Under Genesis Capital’s stewardship, Pacific Smiles plans to continue focusing on organic greenfield growth complemented by opportunistic mergers and acquisitions. This dual approach aims to balance steady expansion with strategic market consolidation.
Overall, Pacific Smiles’ latest update paints a picture of a company on a confident growth path, supported by solid operational metrics and a clear strategic vision under new financial leadership and majority ownership.
Bottom Line?
Pacific Smiles’ growth momentum and leadership changes set the stage for a critical year ahead under Genesis Capital’s watchful eye.
Questions in the middle?
- How will the new Acting CFO Martin White influence Pacific Smiles’ financial strategy and reporting?
- What specific M&A opportunities might Pacific Smiles pursue to complement its organic growth?
- Can the company sustain its strong patient fee growth amid evolving market and economic conditions?
