Raffles Medical’s Q3 profit rises by over 60% to $38.3m

A Raffles Medical clinic in Bishan Street 22 on Feb 24, 2022. ST PHOTO: KUA CHEE SIONG

SINGAPORE – Private healthcare provider Raffles Medical reported a more than 60 per cent year-on-year increase in third-quarter net profit to $38.3 million, from $23.6 million.

Its revenue rose 6.5 per cent year on year to $199.5 million, from $187.3 million in the third quarter of 2021.

This is mainly due to the return of foreign patients seeking treatment at Raffles Hospital as border restrictions eased and the increase in locals undergoing elective surgery that had been delayed during the Covid-19 pandemic, Raffles Medical reported in a business update on Monday.

The group added that in the year to date, net profit has surged 57.3 per cent to $98.2 million.

This compares with $62.4 million in the corresponding period in 2021.

Revenue also climbed 9.6 per cent to $581.8 million in the year to date, from $531.1 million in the same period in 2021.

Raffles Medical attributed its overall performance to “better cost control and deployment of manpower, together with lower inventories and consumables, as well as a reduction in purchased and contracted services”.

In future, the group expects inflationary pressures and rising interest rates to dampen demand, with supply chain and labour constraints having a negative impact on its performance.

Covid-19-related services will also taper off as the pandemic situation improves, it added.

Still, Raffles Medical believes it will remain profitable for the rest of 2022, especially as more foreign and local patients return for treatments at its various medical facilities.

Shares of Raffles Medical closed at $1.33 on Monday.

THE BUSINESS TIMES

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