Australian Clinical Labs (ASX:ACL) has upgraded its earnings and revenue forecast for the first half of FY22, underpinned by strong demand for Covid-19 testing.
The clinical lab boosted its total revenue range by 13 per cent to between $497.3 and $517.2 million. The upgrade reflects continued demand for Covid-19 testing, particularly in Victoria and NSW.
After-tax profit range rose 34 per cent to between $116.3 and $128 million. The company said the profit upgrade reflects a continuation in the expanded margins that were achieved during FY21, reflecting both increased scale and operating leverage.
“We anticipate heightened volumes of Covid-19 testing to continue during the remainder of FY22 due to the impact of new variants and outbreaks, the lifting of travel restrictions and increased demand for both commercial and travel testing,” said CEO Melinda McGrath.
“As we approach the end of 2021, I would like to again thank the Clinical Labs staff for their ongoing commitment and dedication to the community,” McGrath added.
Due to volatility associated with Covid-19 testing, the company does not plan to provide guidance for FY22 at this time.
Shares in Australian Clinical Labs (ASX:ACL) are trading 4.8 per cent higher at $5.23.