Arvida operates 36 villages in the North and South Islands. Photo: 123RF
Aged care and retirement village operator Arvida has posted an slight increase in net profit amid tough operating conditions and a slow housing market.
Key numbers for the 6 months ended September compared with a year ago:
- Net profit $90m vs $89.2m
- Underlying profit $33.6m vs $38.9m
- Revenue $122.1m vs $109m
- Resale margins 28% vs 30%
- Interim dividend 1.2 cents per share vs 2.5 cps
"As the past few years have demonstrated, the need to remain responsive to market conditions is essential for continued business performance," Arvida chief executive Jeremy Nicoll said.
A 12 percent increase in revenues was offset by a 14 percent increase in costs across the business, commissioning of new care centres, and investment in people and technology teams and systems.
"Our ability to adapt as circumstances have required has enabled the business to grow while we have focused on restoring profitability."
The gross value of sales rose 2 percent in the six-month period, with 285 sales including 102 new sales and 183 resales, with unit pricing up 4 percent on 2023's valuations.
"In a challenging housing market both the volume and value of our sales exceeded the same period last year," Nicoll said.
"The second quarter though to September was our best ever with a solid upswing in resales activity."
The level of retirement units under application was 24 percent ahead of the same time last year and at record levels.
He said there were early signs of an improving operating environment, with less uncertainty in the housing market and economic outlook, alongside a change in government policy for the aged care sector and business generally.
Arvida operates 36 villages in the North and South Islands, with a mix of independent living, aged care, hospital and dementia units.