Oceania Healthcare (ASX: OCA), a leading New Zealand integrated operator of retirement villages and aged care facilities, announced record results for the full year ended 31 March 2026. The company reported a 16% increase in sales volumes and a 20% growth in Proforma Underlying EBITDA to $97.7 million. This period also saw a substantial reduction in net debt by $121.4 million, with gearing now at 30.1%.
Financially, Total Comprehensive Income was $75.0 million, flat on FY25. Statutory Net Profit after Tax declined to $0.1 million from $30.4 million, reflecting lower property revaluations and the closure of the Wesley Institute of Nursing Education. Underlying care profitability increased 43%, with Care EBITDA per occupied bed up 40% to $27,000. Operational efficiency initiatives delivered $13.2 million in cost savings for FY26, targeting $20.4 million annualised. Free Cash Flow from Operations, an outflow of $15.0 million, improved 64% from the prior year, with positive cash flow targeted in FY27.
Chief Executive Officer Suzanne Dvorak highlighted a record sales performance, with a 20% lift in the gross value of settled sales to $375 million and a 16% increase in total units settled to 603. Resale activity was strong, with 402 units settled delivering gains of $37 million. Total assets increased to $3.1 billion, even after divesting seven sites for $51.1 million. Proceeds from these divestments contributed to reducing net debt to $506.7 million.
Despite improved cash flow, the Board determined no dividend would be declared for FY26, intending to reassess payments once Free Cash Flow from Operations becomes positive. Chair Liz Coutts expressed satisfaction with the progress, stating Oceania Healthcare enters FY27 in a materially stronger position, focusing on cash generation, disciplined capital allocation, and growth.
