Raffles Medical H1 profit falls 9.6% to S$29 million

[SINGAPORE] Raffles Medical Group posted a net profit of S$29 million for its first half ended Jun 30, down 9.6 per cent from S$32.1 million in the same period a year prior.

The healthcare group crossed the milestone of 50 million cumulative patient visits on Jul 23 across its integrated healthcare network in its 50th year, it said on Monday (Jul 27).

In the China market, revenue increased 13 per cent to 184.8 million yuan (US$27.2 million) in H1 FY2026 from 163.6 million yuan in H1 FY2025. Prior cost-optimisation initiatives also contributed to improved financial performance, it added.

Overall revenue decreased 6.7 per cent year on year to S$353.2 million from S$378.4 million.

Its healthcare services division reported a 16 per cent decline in revenue to S$119.5 million and a profit of S$15.6 million, mainly due to lower occupancy at transitional care facilities.

Meanwhile, the group’s hospital services division registered revenue of S$170.2 million and an 11 per cent increase in profit to S$19.7 million. This was driven by improved operational efficiency and cost management across hospitals in Singapore and China.

Revenue of Raffles Health Insurance stood at S$88.5 million and incurred an operating loss of S$1.1 million, narrowing by 64.3 per cent from S$3.1 million in the year prior. This was due to better claims experience, prudent claims adjudication and effective cost management.

Earnings per share for the period stood at S$0.0158, down from S$0.0173 in the previous corresponding period.

No interim dividend was declared by the mainboard-listed group.

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Operating cash flow generated by the group stood at S$64.6 million in H1 FY2026.

Dividends totalling S$55.2 million were distributed, and the group fully repaid bank loans amounting to S$51.1 million.

Cash and cash equivalents stood at S$262.3 million as at Jun 30, providing flexibility to support existing operations and pursue disciplined growth opportunities.

Based on current conditions and barring unforeseen circumstances, the board expects the medical group to remain profitable in FY2026.

The group noted that the global economic outlook remains uncertain amid ongoing geopolitical tensions, evolving trade disputes and volatility in financial markets. While these factors may affect business confidence, the demand for quality healthcare services is expected to remain resilient.

The healthcare player added that it remains committed to strengthening its regional healthcare network by broadening its range of clinical services, enhancing specialist capabilities and expanding access to quality healthcare across the Asian cities in which it operates.

The group will also continue to evaluate and adopt appropriate technologies, including artificial intelligence, to improve operational efficiency, enhance service excellence and support the delivery of safe, high-quality healthcare services.

Shares of Raffles Medical fell 0.5 per cent to close S$0.005 lower at S$0.95 on Friday.