Raffles Medical Group (RMG) has reported earnings of $59.7 million for the 1HFY2022 ended June, 51.3% higher than earnings of $39.4 million in the same period the year before.
Earnings per share (EPS) stood 51.2% higher at 3.19 cents for the 1HFY2022 on a fully diluted basis.
Revenue for the half-year period increased by 11.2% y-o-y to $382.3 million. This was attributable to the higher revenue from the healthcare division, which increased on the back of higher local and foreign patients seeking treatment in Singapore.
At the same time, this was offset by the decrease in its hospital services revenue as there was a lower number of polymerase chain reaction (PCR) diagnostic tests carried out during the period.
1HFY2022 EBITDA grew by 43.5% y-o-y to $107.0 million, while profit from operating activities increased by 54.1% y-o-y to $86.4 million.
As at June 30, cash and cash equivalents stood at $288.0 million.
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According to the group, its patient numbers in its healthcare and hospital services have recovered with the relaxation of safe management measures in Singapore as well as the resumption of international travel.
It adds that it is also continuing to support the Singapore government in operating combined testing and vaccination centres in two locations in the country even as its Covid-19 support activities and PCR test centres have tapered off.
The group will also continue to operate community treatment facilities (CTF) which have evolved to offer stepdown care for Covid-19 positive patients ahead of discharge from hospitalisation.
Further to its update, RMG has received the approval to set up an in-vitro fertilisation/assisted reproductive therapy centre at Le Cheng, Hainan, China. The centre is targeted to serve the estimated 40 million women in China who may require reproductive fertility services.
The facility will complement the group’s offerings at its three existing hospitals in China.
In addition, the group announced that its operations in China were impacted by lockdowns with its three hospitals encountering “sporadic interruptions” due to the lockdowns. Raffles Hospital Shanghai was the most affected by the lockdowns.
Based on the current conditions, the directors expect the group to remain profitable for the rest of the year.
“Having continued to build capabilities in the past year, Raffles Medical Group is well-positioned to serve returning international and local patients as pandemic measures ease. We are pleased that our patients continue to trust the Raffles brand of quality healthcare services, and we will continue to innovate to serve their evolving holistic healthcare and wellness needs,” says Loo Choon Yong, executive chairman of the group.
Shares in RMG closed at $1.15 on July 29.
