Raffles Medical Group (BSL) H1 2024 earnings summary

Executive summary

• H1 2024 revenue was S$365.7m, down 1.4% YoY; PATMI was S$30.6m, down 48.8%, largely reflecting the tapering of COVID-19 activities and lower government grants.

• Hospital Services grew revenue and profit, while Healthcare Services and insurance results were affected by the end of COVID-19 services and higher insurance claims.

Financial highlights

• EBITDA was S$61.3m, down 35.9% YoY; operating profit was S$41.3m, down 46.1%, and profit before tax was S$43.4m, down 44.6%.

• Profit after tax was S$30.9m versus S$60.4m in H1 2023; PATMI was S$30.6m versus S$59.9m.

• Other operating income fell to S$2.2m from S$8.5m, mainly on lower Wage Credit and Jobs Growth Incentive grants; staff costs declined 1.8% to S$154.3m.

• Operating cash flow was S$34.6m versus S$126.7m in H1 2023; cash and cash equivalents were S$316.3m at 30 June 2024.

Outlook and guidance

• Barring unforeseen circumstances, the Board expects FY2024 to remain profitable; H1 results were in line with Directors’ expectations.

• Priorities include improving operating leverage, consolidating the three existing hospitals in China and pursuing regional business opportunities.