Estia Health has blamed a 32 per cent interim net profit drop on federal funding and lower occupancy rates, warning its second-half results are not likely to significantly improve without aged care sector reform.
Estia flagged in December that poor press from the royal commission into the aged care sector had hurt occupancy rates.
The aged care provider said on Tuesday that its first-half revenue was up 9.0 per cent $316 million but its net profit was down 32 per cent to $14.3 million for the six months to December 31 and its profit before tax had dropped 30 per cent.
Estia said profit had declined because it ensured quality of care and service despite government funding rates not being enough to cover rises in operating costs, principally staff.
The company employs about 7,500 people as nurses, care attendants, catering and support staff at 69 homes in NSW, Queensland, South Australia and Victoria.
Estia said it has not been asked to appear before the royal commission into aged care.
It says reform is needed to support a sustainable and high-quality aged care sector where funding and financing arrangements support the financial viability of efficient providers and provide investment returns sufficient to attract the capital required to meet the increase in expected demand and quality.
It also said none of the recommendations of the interim report would have direct or significant impact on its strategy or operations.
The company declared an interim dividend of 5.4 cents per share fully franked.