Raffles Medical reports 2.9% rise in profit for Q1 FY15

PRIVATE healthcare provider Raffles Medical Group posted a 2.9 per cent year-on-year rise in net profit to S$14.98 million for Q1 FY15 while revenue jumped 8.5 per cent to S$95.02 million.

Revenue was higher on the back of stronger contributions from both its healthcare and hospital services divisions, which were up 13.7 per cent and 6.2 per cent respectively.

Earnings per share for Q1 FY15 came to 2.65 Singapore cents, up slightly from 2.63 cents a year ago.

Operating profit edged up 2.6 per cent to S$17.66 million, thanks to the higher revenue from the increased patient load, which was offset by higher staff costs and depreciation expenses.

"The more measured pace of economic growth in the region and Singapore may have a dampening effect on healthcare demand," the group said. However, it added that upcoming projects Raffles Holland V and the extension of its existing Raffles Hospital would ensure it is well positioned for the future.

The group also said that it is expected to continue to post growth for the rest of the year, barring unforeseen circumstances.