This article is from the Australian Property Journal archive
DEMAND for healthcare driven by an ageing population has underpinned listed private hospital operator Ramsay Health Care’s 12.8% jump in core net profit after tax of $267.8 million in the first half year.
The result was driven by revenue growth of 3.5% to $4.3 billion. Ramsay announced a fully-franked interim dividend of 53.0 cents, up 12.8% on the previous corresponding period.
Managing director Chris Rex, who yesterday announced retirement after nine years with the group, said solid half year-on-half year admissions growth in the company’s major markets had contributed to the excellent first half result.
“Global demand for healthcare driven by an ageing and growing population, clinical innovation and increasing consumer expectations, drove strong first half volumes.
“Our strategically located, well-diversified business in Australia continues to experience strong admissions growth which underpins the need for ongoing brownfield investment.
“In our international markets, both the UK and France also experienced strong volume growth with Ramsay UK recording its highest month ever for NHS admissions in November 2016,” he added.
During the half year, Ramsay’s Australian business achieved revenue growth of 8.8% and EBIT growth of 15% on the pcp, primarily driven by strong admissions growth.
The UK business recorded revenue growth in the first half on the back of strong growth in NHS admissions of 6.2%. EBITDAR increased 2.4% to £51.7 million, on the pcp.
In France, Ramsay Générale de Santé (GdS), had a resilient first half generating an increase in EBITDAR over the corresponding period of 6.5% to €206.1 million despite two years of tariff reduction.
Rex said the fundamentals of the industry remain strong for the long term.
“Demand for healthcare continues to be driven by an ageing and growing population, clinical innovation and increasing consumer expectations.
“We continue to canvas opportunities for hospitals in new and existing markets and our franchise retail pharmacy network will position us to provide integrated care services to patients in addition to chronic disease management and other low cost care healthcare provision in the future.
“Based on strength of the first half results and the continuation of robust growth across all our operations and barring unforeseen circumstances, Ramsay upgrades guidance of core NPAT and core EPS growth to 12% to 14% for full FY 2017 (previously 10% to 12%).” Rex forecast.
Australian Property Journal
