Raffles Medical posts 3.7% rise in Q1 profit

The Raffles Hospital logo, operated by Raffles Medical Group Ltd.
The Raffles Hospital logo, operated by Raffles Medical Group Ltd. PHOTO: BLOOMBERG

SINGAPORE - Raffles Medical Group reported a 3.7 cent rise in net profit to S$15.5 million for its first quarter ended March 31 from the same period a year ago on higher revenue.

Revenue for the quarter jumped 23 per cent to S$116.9 million, thanks to strong contributions from the healthcare services and hospital services divisions, which rose 36.3 per cent and 15.2 per cent respectively.

The revenue growth was mainly driven by increased patient load, greater patient medical needs, higher revenue contributed by more specialist consultants as well as newly acquired International SOS (MC Holdings) Pte Ltd and its subsidiaries (MCH), said the company.

Reveue growth was offset by higher staff costs, inventories and consumables used as well as operating lease and other operating expenses. The increase in staff costs was mainly due to the recruitment of more specialist consultants and staff in preparation for manning more facilities as well as increased staff costs at MCH.

Looking ahead, the group said the Raffles Hospital extension project is progressing according to schedule and, when completed by 2017, will contribute an additional 220,000 square feet of gross floor area to Raffles Hospital.

Additionally, Raffles Holland V has obtained its Temporary Occupation Permit in March 2016 and is on track to open for business in June.

Barring unforeseen circumstances, the directors expect the group to continue growing for the rest of the year.