Image courtesy: WAM
Abu Dhabi-based hospital operator Burjeel Holdings has reported a 47 per cent increase in half-year net profit to $61.3m (Dhs225m), driven by higher revenues, increased operational efficiencies and lower finance costs stemming from ongoing debt reduction.
The healthcare facilities operator said its H1 2023 revenues surged by 13.9 per cent year-on-year (YoY) to Dhs2.2bn, due to an increase in patient footfall and the group’s continued focus on advanced speciality services. Patient footfall surged by 11.2 per cent, with more than 2.9 million patients seen in the half-year period.
“The hospitals segment remains the primary contributor to the group’s revenue, comprising 88.7 per cent of total revenues for the period, consistent with the previous year,” Burjeel said in a bourse filing.
The group’s earnings before interests, taxes, depreciation and amortisation (EBITDA) reached Dhs467m in the first half of the year, up 12.7 per cent YoY with a margin of 22.3 per cent despite rising manpower costs.
Burjeel said it remains focused on increasing the proportion of high-yielding complex care and complex surgeries in its overall service mix, delivering a significant impact on its topline and medium-term margin expansion.
The group’s flagship hospital, Burjeel Medical City (BMC), continues to be a significant growth enabler with a focus on high-potential complex care services.
BMC’s revenues jumped 34.5 per cent to Dhs475m in H1 2023. The hospital posted a 70.9 per cent growth in total patient footfall during the same period while inpatient bed occupancy increased from 29.7 per cent in the first half of 2022 to 43.5 per cent this year.
Burjeel’s board of directors recommended Dhs95m, which translates to 2 fils per share and represents 42 per cent net profit for H1 2023 and is payable up to September 1, 2023.
Burjeel expands global footprint
The healthcare facilities operator is accelerating its growth strategy while expanding its network across the Middle East and North Africa. Burjeel recently agreed to operate and manage ADNOC’s 122-bed healthcare facility in the Al Dhafra region, Al Dhannah Hospital. The agreement will commence in the last quarter of the year.
The group also put the final touches on the first of its PhysioTherabia clinics in Saudi Arabia – the joint-venture network of sports medicine and rehabilitation centres established with Riyadh-listed Leejam Sports Company. PhysioTherabia expects to open more than 60 clinics over the next 24 months.
“Our future growth will encompass further strategic geographic expansion, additional strategic alliances in the field of transformative and complex medical care and continuous enhancement of our state-of-the-art infrastructure,” said John Sunil, CEO of Burjeel Holdings.
“As a premier referral hub in the region, our expanding portfolio of services and focus on identifying unique opportunities in healthcare will be key drivers for our future growth.”
Burjeel forged several partnerships in the six months to June 30. It partnered with Northwell Health, the largest healthcare provider in New York State, to set up an advanced neuroscience institute in Abu Dhabi.
The hospital operator partnered with commercial biopharma company, BridgeBio Pharma, for early diagnosis and treatment of rare diseases or disorders in the region. Burjeel said these strategic alliances help elevate its brand on the global stage.