Raffles Medical Group (BSL) H2 2023 earnings summary

Executive summary

• FY2023 revenue fell 14.1% YoY to S$706.9m and profit after tax fell to S$91.1m as operations normalized; both remained above FY2019 levels.

• PATMI was S$90.2m, down 37.1%; hospital services remained strong, while COVID-19-related activity in FY2022 lifted comparisons for healthcare services.

• Focus remained on value-accretive growth, improving operating leverage, and expanding selectively where demand and investment conditions are acceptable.

Financial highlights

• Revenue S$706.920m vs S$822.916m restated in FY2022; operating profit S$115.755m vs S$195.451m; PBT S$119.439m vs S$191.340m.

• Profit after tax S$91.090m vs S$143.400m; PATMI S$90.150m vs S$143.214m; diluted EPS 4.82 cents vs 7.67 cents.

• EBITDA was S$154.107m vs S$235.698m; other operating income included a S$7.4m investment-property fair-value gain, while FY2022 included S$9.958m property impairment and S$7.338m intangible/goodwill impairment.

• Net cash from operating activities was S$189.312m vs S$196.225m; cash and cash equivalents at year-end were S$343.598m vs S$253.127m.

Outlook and guidance

• Plans call for measured expansion into additional Asian cities and countries, prioritizing genuine demand, acceptable operating conditions, and investment risk.

• Management expects slower regional growth, inflation, and labour constraints to potentially dampen high-end healthcare demand, while remaining alert to regional opportunities.

• Faster growth is anticipated as economies recover and geopolitical tensions ease; no numerical financial guidance was stated.