Raffles Medical posts 0.5% rise in Q2 profit

Raffles Medical Group's Hospital Services division saw revenue inch up 0.3 per cent while the revenue of its Healthcare Services division declined by 1.1 per cent.
Raffles Medical Group's Hospital Services division saw revenue inch up 0.3 per cent while the revenue of its Healthcare Services division declined by 1.1 per cent. PHOTO: BLOOMBERG

SINGAPORE - Raffles Medical Group reported on Monday (July 31) a 0.5 per cent year-on-year increase in net profit to S$16.8 million for the second quarter.

For the quarter, revenue edged up 1 per cent to S$120.1 million. Raffles Medical said there was softer than expected demand from foreign patients, though the group continued to register growth in patient load.

Its Hospital Services division saw revenue inch up 0.3 per cent while the revenue of its Healthcare Services division declined by 1.1 per cent.

Revenue growth was partly offset by higher staff costs and consumables used. The increase in staff costs was due mainly to the recruitment of more specialist consultants, management and clinical staff in preparation for the opening of RafflesHospital Extension in the last quarter of this year, said the group.

Net profit for the first half-year rose 0.3 per cent to S$32.3 million on a 0.3 per cent dip in revenue to S$235 million.

It added that the continued strong operating cashflows generated from the group's business operations contributed to a healthy cash position of S$112.4 million as at June 30. This was after accounting for distribution of final dividend of S$5.5 million and payment of S$53.6 million for investment properties under development.

An interim ordinary dividend of 0.5 Singapore cents per share has been declred for the financial year ending Dec 31.