NMC Health, the U.A.E private healthcare provider, on Tuesday announced that its net profit for the first half of the year increased by 26.6% (from US $ 32. 3m 1H13 to US $40.9m 1H14) boosted by higher occupancy across its hospitals.
Announcing its interim results for the first half of the 2014 financial year ending 30 June 2014, NMC Health said its revenues increased by 15.1% to US$ 314.3m (H1 2013: US$ 273.1m). Group EBITDA improved by 12.7% to US$ 52.0m (H1 2013: US$46.1m).
The group’s EBITDA was US$52.0m (+12.7% YoY) resulting in a Group EBITDA margin of 16.5%.
Healthcare division patient numbers increased by 13.7% YoY, achieving a positive increase in occupancy despite the rise in the number of operational beds to 277 and delivered a moderate expansion in revenue per patient to US$114.
Distribution division growth was supported by new product introductions and increased sales effort with stock keeping units (SKUs) exceeding 81,000.
NMC Health said two major milestones were achieved since the end of the period, with the openings of Brightpoint Women’s Hospital and NMC Dubai Investment Park General Hospital in July, 2014.
Revenue in the Healthcare division for the period increased by 12.3% to US$ 160.9m (H1 2013: US$ 143.3m). Healthcare division EBITDA was US$ 45.5m for the first half of the year, which represented growth of 12.5% compared to same period last year (H1 2013: US$ 40.5m). The EBITDA margin was 28.3% compared with 28.2% for the comparative period in 2013.
Revenue in the Distribution division grew by 12.3% to US$ 165.2m (H1 2013: US$ 147.1m) compared to the same period last year. Distribution division EBITDA was US$16.5m (H1 2013: US$ 14.5m), with an EBITDA margin of 10.0% (H1 2013: 9.9%).
The number of patient visits to NMC’s hospitals and other medical facilities has increased by 13.7% to 1.15 million in the first half of 2014. Patient growth has been particularly strong in our Dubai, Al Ain and Sharjah medical assets.
NMC’s Dubai Specialty Hospital, which delivered a 13% YoY increase in patient numbers, expanded occupancy by 1110bps to 69% during the same period despite an increase in operational beds to 94 (+3 beds) out of 100 licensed. Meanwhile, patient visits increased by 5% at the much smaller Dubai General Hospital in Deira and by 94% at the more specialized BR Medical Suites in Dubai Healthcare City, where we broadened our service offering to include more general medical services.
At Al Ain Hospital, patient numbers grew by 12% YoY and operational beds increased by 22% to 73 (out of a total capacity of 100). In the Sharjah medical center, patient numbers expanded by 16%.
Meanwhile, Abu Dhabi Specialty hospital continued its positive trend and NMC was able to fine tune its service offering to sustain an even higher capacity utilisation rate, as patients increased by 9% and bed occupancy reached 77% (+50bps). In parallel, the NMC Day Surgery Centre in Mohammad bin Zayed City in Abu Dhabi, which opened in July 2013, continued to ramp up and saw patient numbers expand by a very strong 65% compared to the second half of FY 2013 as community awareness of its availability and NMC’s services increased.
During the period, it continued to achieve high client satisfaction with operation and management services at Sheikh Khalifa General Hospital in Umm Al Quwain, which NMC manages on behalf of the UAE Ministry of Presidential Affairs. NMC has recorded management fees in respect of this contract of US$ 2.9m during the first half of 2014.
Regulatory approval has been obtained in relation to the Brightpoint Women’s Hospital (Abu Dhabi) and DIP General Hospital (Dubai). As a result, both facilities commenced operations in early July 2014.
Brightpoint Women’s Hospital, the first private sector women’s hospital in Abu Dhabi, has a licensed capacity of 100 beds and will start initial inpatient operations with 60 beds. DIP General Hospital holds a 60 bed licensed capacity with operations commencing with 30, with the remainder being made available in line with demand.
Both Abu Dhabi and Dubai have proven to be highly rewarding markets for NMC with rapidly expanding demand, leaving the balance for future market introduction based on demand.
The opening of the DIP General Hospital in Dubai is also a timely addition in a strategic location within the emirate (in close proximity to the Dubai World Central, Jebel Ali Port and Dubai Expo area) ahead of the full roll out of mandatory healthcare insurance.
Total capital expenditure on the development and initial equipment for these facilities amounted to US$131.4m as at 30 June 2014.
Construction of new Khalifa City Hospital (250 beds), which will be our largest facility when fully open, is also progressing on schedule. The building shell and core are almost fully completed and work on the interior has commenced and expected to open in H1 2015.
Khalifa City is a growing suburb of Abu Dhabi and along with other neighbouring suburbs of Mussafah, Baniyas and Shahama, is anticipated to house around 20% of the population of Abu Dhabi by 2030.
Work is also progressing well at Al Ain Medical Centre and is expected to open in H2, 2014. The Al Ain Medical Centre will expand NMC’s reach within the region, increase referrals to our specialty hospital in the city and boost our medium to long-term growth prospects.
The 12.3% H1 2014 revenue growth in our Distribution division to US$165.2m was a continuation of recent trends and benefitted from the introduction of new product lines during the past year, which have started to deliver substantial market demand. EBITDA at the division reached US$16.5m with margins of 10.0% (+12bps YoY).
The Fast Moving Consumer Goods (FMCG) segment, which remains the largest revenue contributor in this division, achieved 7% growth YoY. Sales increased by a particularly strong 53% in the Food & Catering segment and 16% in Pharmaceuticals.
“I am pleased with the strong start to this year as NMC crossed the US$50 m EBITDA mark for the first time by midway through the financial year and simultaneously delivered substantial growth in key performance indicators,” said Dr B.R. Shetty, Chief Executive Officer.
Source : WAM News Agency for United Arab Emirates
