Earnings of healthcare provider Raffles Medical Group softened by 8.1% to $44.7 million in 2HFY2021 ended Dec 31 2021, from $48.6 million in the year before.
This follows higher tax expenses for 2HFY2021, as the period's earnings before interest, taxes, depreciation and amortisation (EBITDA) had grown 4.9% y-o-y to $86.1 million from $82.1 million.
However, the group’s full-year earnings for FY2021 rose by 27.7% to $84.2 million, from $65.9 million in the year before thanks to stronger revenue growth.
This translates to earnings per share (EPS) of 4.51 cents on a fully diluted basis, up 26.0% from the 3.58 cents seen in FY2020.
With this, the group’s net asset value per share came in at 45.75 cents on Dec 31 2021, from 40.13 cents seen in the year before.
Revenue for FY2021 increased by 27.4% to $724.0 million, on the back of higher sales of Covid-19 related products and services.
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Against this backdrop, revenue from the group’s healthcare services division was up by 63.1% to $458.7 million, while that from its hospital services segment was up by 10.6% to $346.1 million.
It’s investment holdings segment – which captures its holdings related to investment properties – was up by 21.2% to $39.7 million.
Revenue from the group’s activities in Singapore increased by 27.5% to $660.4 million, following its support to the government’s Covid-19 initiatives such as performing air-border screening, pre-event testing, pre-departure testing for cruise passengers and operating dedicated polymerase chain reaction (PCR) testing centers.
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Additionally, the RafflesHospital Emergency Care Collaboration programme with the Ministry of Health (MOH) allowed the group to take in additional patients requiring emergency care when the public hospitals had to be temporarily closed to cater to patients with the coronavirus.
Meanwhile, revenue from the group’s operations in the Greater China region was up by 43.7% to $49.3 million. Having received its license to operate in RafflesHospitalShanghai in July 2021, the group now has three hospitals on operation in China.
Raffles Medical’s operations in the rest of Asia saw an 11.5% dip in revenue to $14.1 million in FY2021.
Overall, the group’s net profit came in at $83.7 million in FY2021, up 29.5% from the $64.7 million posted a year ago.
As at Dec 31 2021, cash and cash equivalents stood at $263.9 million, up from $202.1 million at end-December 2020.
As announced previously, Raffles Medical says it will consolidate its interim and final dividend and disburse it as an annual core dividend of up to half its average sustainable PATMI (profit after taxes minus interest). For the transition year FY2021, the group had guided earlier that it expected to pay a total final dividend of not less than 2.5 cents per share.
To this end, the group has recommended a final dividend of 2.8 cents per share. This comprises of a core dividend of 1.8 cents per share and a special dividend of 1.0 cents per share in respect of FY2021.
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“Our strong results have shown that the group is resilient. We must continue to be nimble and be ready to pivot our services as the situation evolves and as the world prepares to move into an endemic stage,” says executive chairman Loo Choon Yong.
He notes that the group has contributed to the prevention of 8,000 Covid-19 deaths and 112,000 hospitalisations.
Barring unforeseen circumstances, Loo expects Raffles Medical to remain profitable in FY2022 even as its Covid-19 support activities taper off. He is also cautiously optimistic that the easing of border restrictions will allow international travel to resume in the near future.
As such Loo is now “ building for the future” by investing in the group’s facilities, technology and people, to continue being the trusted partner for health to patients and corporate clients.
As at 10.23pm on Feb 21, shares in Raffles Medical were down 2 cents or 1.53% at $1.29.
Cover image of Raffles Medical's executive chairman Dr Loo Choon Yong: Albert Chua/The Edge Singapore
