Raffles Medical Group sees 2HFY2022 earnings increase by 87.5% y-o-y to $83.8 mil as foreign patients return
$RAFFLES MEDICAL GROUP LTD(BSL.SI)$ Raffles Medical Group has reported earnings of $83.8 million for the 2HFY2022 ended Dec 31, 2022, 87.5% higher than earnings of $44.7 million in the same period the year before.
The higher earnings were attributable to the return of foreign patients seeking medical treatment in Singapore after the easing of Covid-19-related restrictions during the 2HFY2022.
During the period, RMG also began Singapore’s first Transitional Care Facility in July 2022 for managing chronically ill patients from public hospitals to alleviate the burden on the public healthcare system, offsetting its lowered involvement in operating Covid-19 vaccination centres.
During the FY2022, RMG’s earnings increased by 70.5% y-o-y to $143.5 million as patients returned. For most of the year, however, the group’s Chinese operations were impacted by the country’s zero-tolerance policy for Covid-19.
“Although all three Raffles hospitals in China continued to operate during the respective lockdowns, the operations faced staffing constraints and interruption of patient access to its facilities. In December 2022 when China eased its zero-tolerance policy for Covid-19, the three hospitals supported the local community in government-led Covid-19 initiatives during this period,” says the group.
In the 2HFY2022, RMG saw revenue increase by 1.1% y-o-y to $384.2 million while other operating income fell by 83.2% y-o-y to $1.1 million.
Revenue for the FY2022 increased by 5.9% y-o-y to $766.5 million as revenue from the group’s healthcare division grew from the return of patients. This was offset by the lower revenue from its hospital services division, which fell due to the lower polymerase chain reaction (PCR) tests carried out in FY2022.
During the FY2022, operating income fell by 42.5% y-o-y to $8.0 million.
Earnings per share (EPS) for the 2HFY2022 and FY2022 stood at 4.50 cents and 7.69 cents respectively on a fully diluted basis.
On the back of the group’s strong performance, RMG has declared a final ordinary dividend of 3.8 cents per share, 35.7% higher than the 2.8 cents declared the year before.
Looking ahead, the group says it expects to remain profitable in the FY2023.
As at Dec 31, 2022, cash and cash equivalents stood at $252.1 million.
“As we face the challenges brought about by a slower economic growth, we will continue to innovate and improve our service offerings to meet the evolving healthcare and wellness needs of patients, clients, and partners we serve and care for. Our core values of compassion, commitment, excellence, team-based care, and value will continue to guide Raffles staff to work as a team in delivering our service promise to our patients,” says Dr Loo Choon Yong, executive chairman of RMG.
Shares in $RAFFLES MEDICAL GROUP LTD(BSL.SI)$ RMG closed at $1.47 on Feb 24
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