Company Interview / Ryman's reset starts to show

Key points:

Revenue rises, operating EBITDA roughly doubles, but statutory loss and no dividend remain Positive free cash flow and lower gearing seen as validation of strategic reset Shift from development‑led growth to value and cash generation from existing assets

Naomi James from Ryman Healthcare outlines a major financial and strategic reset that she states is now delivering improved performance. James notes full-year revenue of NZ$856 million, up more than 12%, with operating EBITDA roughly doubling as revenue grows around 10% while costs rise about 3%. The reported net loss narrows to NZ$171.3 million, from NZ$514 million previously, though no dividend is declared and tangible assets per share fall to NZ$4.

James highlights the return to positive free cash flow for the first time in over a decade, citing around NZ$280 million of year‑on‑year cash generation. She attributes this to stronger care earnings, higher aged care occupancy, premium pricing, and a cost‑out programme, alongside reduced capital expenditure and improved sales performance. James says gearing is now the lowest in the sector, with a more disciplined approach to capital.

Looking ahead, James targets a NZ$150 million uplift in cash flow from existing operations and about NZ$500 million cash release from the balance sheet over the next few years, with NZ$47 million and NZ$160 million respectively achieved in the first year. She views Ryman’s integrated “continuum of care” model as a competitive advantage in New Zealand’s ageing‑population market, while seeing potential for future sector consolidation.