Raffles Medical H2 profit rises 87.5% to S$83.8 million
RAFFLES Medical Group posted an 87.5 per cent rise in net profit for the second half of 2022, on better cost control and manpower deployment, along with lower inventories and consumables used.
Foreign patients also returned to Singapore to seek medical treatment during the period, as Covid-19 restrictions eased and borders reopened, the healthcare services provider said on Monday (Feb 27).
Net profit for the six months ended Dec 31, 2022, stood at S$83.8 million, compared with S$44.7 million posted in the same period the previous year. This translates to earnings per share (EPS) of S$0.0452, against an EPS of S$0.0239 in the previous year.
Revenue rose 1.1 per cent year on year to S$384.2 million, from S$380 million.
There was a 28.6 per cent reduction in staff costs to S$145.6 million, from S$204.1 million. Meanwhile, inventories and consumables used dropped 27.9 per cent to S$29.7 million, from S$41.2 million.
Raffles Medical reported a return of foreign patients seeking medical treatment in Singapore in the second half of 2022. Covid-19 activities relating to vaccination centres tapered off during the period, while some community treatment facilities evolved into step-down care facilities.
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The board has proposed a final dividend of S$0.038 per share. In the same period the previous year, the board recommended a final dividend of S$0.018 per share and a special dividend of S$0.01 per share.
For the full year ended Dec 31, 2022, net profit rose 70.5 per cent to S$143.5 million, translating to an EPS of S$0.0773. Revenue was up 5.9 per cent to S$766.5 million.
Revenue from its healthcare division grew 8.6 per cent to S$498.3 million as patients returned to clinics, while its hospital services division reported lower revenue of S$313.3 million, due to a drop in polymerase chain reaction tests carried out in the fiscal year.
The group’s China operations continued to be impacted by the country’s zero-Covid-19 policy. Although all three of its hospitals continued operations during the lockdowns, Raffles China Healthcare’s hospital operations faced staffing constraints and interruption to patient access.
Raffles Medical’s directors expect the group to remain profitable in FY2023. The group expects its core healthcare business in Singapore to continue growing and expanding while its non-core Covid-19-related business phases out.
“With the relaxation of Covid-19 containment policies in China, Raffles China Healthcare will benefit from the lifting of travel restrictions. Local and expatriate patients can now return to seek treatment at our China hospitals and medical clinics,” Raffles Medical added.
Shares of mainboard-listed Raffles Medical closed 2.1 per cent or S$0.03 higher at S$1.47 on Friday.
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