Raffles Medical Group (RMG) has reported profit after tax of $38.3 million for the 3QFY2022 ended Sept 30, 62.1% higher y-o-y.
Revenue for the 3QFY2022 increased by 6.5% y-o-y to $199.5 million due to the return of the foreign patients seeking treatment, as well as the return of domestic patients returning for their elective treatments.
For the 9MFY2022 or year-to-date (ytd) September, RMG’s profit after tax stood 57.3% higher y-o-y to $98.2 million, while revenue increased by 9.6% y-o-y to $581.8 million.
According to the group, the surge in profit after tax for the 3QFY2022 and 9MFY2022 was attributable to better cost control and deployment of manpower, together with lower inventories and consumables used as well as a reduction in purchased and contracted services.
Looking ahead, the group expects to see its Covid-19-related services tapering off as the pandemic situation improves. At the same time, it expects to see the return of its foreign and domestic patients returning for treatment at its Raffles Hospital, Raffles Medical and Raffles Dental branches. Raffles China Healthcare will also benefit from any relaxation of travel restrictions.
The group adds that it expects to remain profitable for the rest of the year based on the current conditions, even as it sees the economies of the countries where it operates in to be affected by the current macroeconomic headwinds.
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Higher inflation and interest rates may dampen the demand for high end healthcare services. Supply chain and labour constraints may impact the group negatively, it says in its Oct 31 business update.
Shares in RMG closed flat at $1.27 on Oct 28.
