Laboratory testing provider ALS has reported full-year net profit fell $24.8 million to $127.8 million after impairments to its Latin American life sciences business and industrial division.
The Brisbane-based company says Latin American life sciences had a non-cash impairment of $50 million due to increasing risk from socio-economic issues, COVID-19 and weakening currencies.
The industrial division had a $40 million impairment due to the virus impact and the recent downturn in the oil and gas sector.
ALS still managed to increase revenue substantially in these two fields across the world.
Industrial revenue grew by 17.6 per cent to $250 million, while life sciences revenue grew by 13 per cent to $939 million.
The other revenue source, commodities, grew 3.5 per cent to $642 million.
While statutory net profit after tax was down, management was keen to highlight underlying net profit after tax of $188.8 million.
This was a 4.3 per cent increase on the previous full-year result and met the guidance range of $185 million to $195 million.
Shareholders’ dividend was 6.1 cents per share, franked to 70 per cent, down from 11.5 cents per share, franked to 35 per cent, in the 2019 result.