Summerset Group Holdings: Record Underlying Profit in 2024, EPS Beats Expectations

Summerset Group Holdings Limited (NZSE:SUM) has reported a record full year underlying profit for the year ended 31 December 2024, with earnings per share (EPS) beating analyst expectations. The company's strong financial performance was driven by increased sales, a broadacre build strategy, high resident satisfaction, and awards and recognitions.



Summerset Group's record underlying profit of NZ$206.4 million in 2024 was up 8% on the previous year, with EPS of NZ$1.4465 compared to NZ$1.8271 a year ago. Diluted EPS was NZ$1.4421, up from NZ$1.8238 in 2023. The company's total revenue for the year was NZ$319.9 million, up 18% on the previous year, while total assets reached NZ$8.1 billion, an increase of 16% from the previous year.

Summerset Group's CEO, Scott Scoullar, attributed the company's strong performance to its broadacre build strategy, which has allowed the company to deliver high-quality retirement living experiences across multiple regions. The company's focus on resident satisfaction has also contributed to its success, with village and care resident satisfaction reaching 97% in 2024. Additionally, Summerset Group has won several awards, including the Gold for the Reader’s Digest 2025 Quality Service Award in the Retirement Villages category for the second year in a row.



Summerset Group's expansion into Australia has also contributed to its overall financial performance. The company has acquired five land sites in Australia and has made significant progress in its Australian development, with the first Australian residents moving into its Cranbourne North village in March 2024. The company's land bank totaled 6,147 retirement homes and 1,396 care homes across New Zealand and Australia, providing a strong platform for future growth.



Looking ahead, Summerset Group's earnings are forecast to decline by an average of 8.6% per year for the next three years. However, the company's annual revenue is expected to grow at a rate of 12.4% per year, suggesting that its Australian expansion may contribute to this growth. The company's final dividend for the year was NZ$0.13 per share, up from NZ$0.11 per share in the previous year.

In conclusion, Summerset Group Holdings Limited's record underlying profit in 2024 and EPS that beat analyst expectations reflect the company's strong performance in the retirement village and aged care sector. The company's broadacre build strategy, focus on resident satisfaction, and expansion into Australia have all contributed to its success. While earnings are expected to decline in the coming years, the company's revenue growth prospects suggest a positive outlook for the future.