Earnings surge as NMC Health continues to expand
NMC Health, an integrated private healthcare provider operating across the United Arab Emirates and a provider of fertility treatments through its Spanish subsidiary Clinica Eugin, announced its results for the full year ended 31 December on Wednesday.
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The FTSE 250 company posted a substantial 38.6% improvement in revenue to $1.22bn year-on-year, with EBITDA surging 63.7% to $246.1m.
Its EBITDA margin was 309 basis points higher at 20.2%.
Net profit was up 76.5% at $151.4m, with the net profit margin 267 basis points higher at 12.4%.
The board said basic earnings per share were 71.1 cents, an improvement of 60.6%.
On an adjusted basis, net profit was up 69.4% at $165.2m, while adjusted earnings per share rose 55.2% to 78.5 cents.
On the operational front, the healthcare division saw patient numbers increase 34.5% to 4.3 million, with revenue per patient from healthcare services improving 28.3% to reach $176.30.
Hospital bed occupancy rates reached 74.3%, an improvement of 80 basis points, with operational beds increasing from 26.4% to 679 beds.
Doctors employed reached 1042, an increase of 27.5%.
The company’s distribution division increased its product portfolio by 9.3% to 97,600 stock keeping units, with sales and marketing personnel at the distribution division growing 11.0% to 769.
“NMC Health delivered record growth in 2016 as we began to reap the long-term rewards of several years of progress on the two stages of our growth strategy,” said CEO and executive vice-chairman BR Shetty.
“In recent years NMC has expanded its asset and brand portfolio organically and inorganically into additional healthcare services segments, extended our presence across the continuum of care, entered into higher growth and margin specialties with very favourable regional supply/demand dynamics, and selectively entered new geographies to position the group at the intersection of multiple growth channels to the ultimate benefit of all our stakeholders.”
Dr Shetty said the board was expecting “another good year” for the UAE economy in 2017 supported by further GDP growth of around 2.3% despite lower oil prices, based on forecasts by “leading” rating agencies.
“For the local healthcare sector, one of the key drivers of growth will be the increase in the patient volumes with expected completion of mandatory healthcare insurance in the Emirate of Dubai by Q1 2017.
“For NMC in particular, we expect continued strong performance from our enlarged network, its growing specialisms and the further introduction of higher value added services especially through our single specialty verticals.”