The Christchurch-based aged care and retirement village operator reported a profit before tax of $102.7 million for the year ended March, a 23% improvement on the $83.8 million reported in the previous corresponding period (pcp).
The underlying profit, being increasingly used by companies, rose 17.5% to $72.1 million and total revenue increased 18% to $129.65 million.
Earnings per share soared 27% to 10.1c per share and the final dividend was 3.8c per share, up 12%. Operating cash flows were strong at $133 million for the year and the increasing value of the village assets helped boost shareholders' equity by 24% to $566 million.
Craigs Investment Partners broker Chris Timms said the shares rose from $2.65 at the opening of the NZX to $2.70 as the euphoria of the result set in.
"This is a good result, above expectations and slightly ahead of our forecasts. Ryman ticked all the boxes - a good growth forecast and an expansion plan. We've always had a strong belief in Ryman and the confidence investors have had in the company has been rewarded," he said.
Forsyth Barr broker Tony Conroy said Ryman remained one of his preferred companies given its unique domestic growth profile.
Ryman chairman David Kerr said the result reinforced the defensive nature of the company's trading activities and reflected the company's growing reputation for looking after its residents.
The company recently announced a rise in its build rate to 550 units or beds a year in New Zealand.
"We have escalated our expansion plans to meet the growing demand we are experiencing. We achieved our new build rate this year, which boosted our new sales by 50% and allowed us to beat our medium-term target of 15% underlying profit growth."
This year's expansion would also spark profit growth in the year ahead as it established new income streams from care fees, management fees and resales gains, Dr Kerr said.
A village opened in Dunedin during the financial year and work had started on new villages in both Gisborne and Tauranga.
The company was building across nine sites, had increased its land bank to more than 2100 units or beds and was well placed to continue building at the new rate of 550 units or beds a year for the foreseeable future, he said.
The company recently acquired a site in Waikanae and was seeking a site for its first village in Australia, he said.
Mr Timms said Ryman was fortunate always to have had a large land bank to call on, and its expansion plans indicated a demand for its services.
