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PureHealth reports net profit growth of Dh491m and revenue of Dh6.1b in Q1 of 2024

PureHealth reports net profit growth of Dh491m and revenue of Dh6.1b in Q1 of 2024
7 May 2024 11:22

ABU DHABI (WAM)


PureHealth achieved robust revenue growth of 52 per cent, reaching Dh6.1 billion, and also 85 per cent year-on-year increase in hospital revenue, totalling Dh4.8 billion. This growth was propelled by a 10 per cent year-on-year surge in total patient volumes, reaching 1.5 million patients, as well as a 10 percentage point rise in bed occupancy rates to 71 per cent.

This upward trajectory was bolstered by the consolidation of recent 100 per cent acquisitions of Sheikh Shakhbout Medical City (SSMC) in Abu Dhabi and Circle Health Group in the UK.

Hamad Al Hammadi, PureHealth Group’s Chairman, said: “PureHealth's performance is setting us on a path to joining the ranks of top-tier global healthcare providers. The dedication of our employees is the cornerstone of this success, and their efforts continue to fuel our expansion across the UAE and internationally. We are committed to maintaining this momentum and driving further advancements in pursuit of our mission to advance the science of longevity in the years to come, delivering premium healthcare services to people in the UAE and beyond.“

Shaista Asif, PureHealth Group Chief Executive Officer, said: “Through our integrated strategy and expansion efforts, the successful acquisitions of Circle Health Group and SSMC have added over 2,000 beds across a network of more than 50 hospitals. This expansion underscores our commitment to excellence and demonstrates a clear path toward creating long-term, sustainable shareholder value. Moreover, the Sheikh Tahnoon Bin Mohammed Medical City (STMC), a large tertiary care facility with a capacity of more than 850 beds inaugurated in the latter half of 2023, is ramping up its operations in response to increased demand in the Al Ain region.

"STMC is set to be a vital addition to PureHealth’s hospital portfolio, serving as another milestone in the group’s value-creation journey. While we are experiencing organic growth within our current business units, we will continue to actively explore opportunities for capital deployment in our pursuit of inorganic growth. This strategy aims to further enhance diversification, scale, and income growth.”

Acquisitions

During Q1 2024, PureHealth completed the 100 per cent acquisition of Circle Health Group, the UK’s largest private hospital provider, followed thereafter by the 100 per cent acquisition of SSMC, the UAE’s largest tertiary hospital. These acquisitions are part of the group's commitment to its vision of extending Abu Dhabi's healthcare influence globally through a series of strategic acquisitions.

Valued at $600 million, SSMC generated revenues of Dh2.2 billion in 2023 and has an overall capacity of 732 beds, 46 service lines within 12 clinical departments, 490 physicians and 1,500 nurses. SSMC has been licensed by Department of Health – Abu Dhabi to provide Bone Marrow Transplant and STEM. SSMC is also recognised as a centre of excellence for stroke care.

Alongside achievements in the hospitals segment, the insurance segment recorded a revenue increase of 13 per cent year-on-year to Dh1.6 billion in Q1 2024, driven by higher gross written premiums, reflecting the growing demand for Daman’s insurance offering. The procurement segment further supported revenue growth, with a 4 per cent increase to Dh1.1 billion in Q1 2024

In terms of profitability, the group's gross profit reached approximately Dh1.5 billion in Q1 2024, marking a 6 percentage point year-on-year increase to achieve a gross margin of around 24 per cent. This profitability is attributed to several factors, including an enhanced patient mix, reduced utilisation rates across the insurance segment, and the successful execution of ongoing operational streamlining and cost optimisation initiatives.

As a result of increased operational efficiencies and organic growth, the group’s EBITDA has increased to approximately Dh1.1 billion, a 127 per cent increase year-on-year, with the EBITDA margin for Q1 2024 expanding to around 18 per cent compared to 12 per cent in Q1 2023). Net profit for PureHealth was notably strong at approximately Dh491 million, up by around Dh272 million from Q1 2023, with a margin improvement of approximately 2.5 percentage points to 8 per cent.

As of 31 March 2024, PureHealth reported total assets of approximately Dh47 billion, up from around Dh28 billion in Q1 2023, which includes a total cash balance of Dh8 billion. The Net Cash balance stood at approximately Dh4.4 billion (excluding lease liabilities), resulting in a Net Cash to EBITDA ratio of 1.45x as of the last twelve months to 31 March 2024.

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