Raffles Medical H2 profit rises 87.5% to $83.8 million
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Foreign patients returned to Singapore to seek medical treatment during the second half of 2022 as borders reopened.
PHOTO: ST FILE
Vivienne Tay
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SINGAPORE – 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.
Net profit for the six months ended Dec 31, 2022, stood at $83.8 million compared with $44.7 million posted in the same period a year ago. This translates to earnings per share (EPS) of 4.52 cents against an EPS of 2.39 cents in the year-ago period.
Revenue rose 1.1 per cent year on year to $384.2 million from $380 million.
There was a 28.6 per cent reduction in staff costs to $145.6 million from $204.1 million. Meanwhile, inventories and consumables used dropped 27.9 per cent to $29.7 million from $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.
The board has proposed a final dividend of 3.8 cents per share. In the same period a year ago, the board recommended a final dividend of 1.8 cents per share and a special dividend of one cent per share.
For the full year ended Dec 31, 2022, net profit rose 70.5 per cent to $143.5 million, translating to an EPS of 7.73 cents. Revenue was up 5.9 per cent to $766.5 million.
Revenue from Raffles Medical’s healthcare division grew 8.6 per cent to $498.3 million as patients returned to clinics, while its hospital services division reported a lower revenue of $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 policy.
Although all three of its hospitals continued operating 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 financial year 2023. 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 said.
Shares of mainboard-listed Raffles Medical closed 2.1 per cent or three cents higher at $1.47 on Friday. THE BUSINESS TIMES
