Tuesday 19 June 2018

Prasanth Manghat

NMC Health H1 revenues jump 34pc to $775m

DUBAI, August 23, 2017

The UAE-based NMC Health, a leading integrated private healthcare network operator in the GCC region, has reported a revenue increase of 34 per cent to $775.2 million the first half of 2017, compared to H1, 2016 ($ 578.3 million).
EBITDA reached $170.7 million (+47.3 per cent year-on-year), resulting in a group EBITDA margin of 22 per cent.

Healthcare business verticals contributed 86.9 per cent of group EBITDA in the period, up from 84.7 per cent in H1, 2016.

Adjusted Net profits attributable to shareholders increased to $105.7 million (+56 per cent YoY).

Basic earnings per share (EPS) was reported at $0.429 (H1, 2016: $0.336), diluted EPS was $0.426 (H1, 2016: $0. 334) and adjusted EPS $0.514 (H1, 2016: $0.363).

Business review
NMC Health produced strong performance in H1, 2017 with good progress seen across all parts of the group. Its newly opened facilities continue to ramp-up well and the group’s acquired businesses are benefitting from both improved performance and the commencement of planned integration projects, the company said.  

“Our long-term growth strategy, predicated on capacity and then capability focussed growth, continues to accelerate our expansion into more complex medical, and thus higher value added, specialty healthcare segments. The subsequent establishment of new strategic multi-brand verticals is enabling us to unlock synergies within the enlarged group, delivering significantly improved growth for the Group despite the continuing more moderate macro environment in our primary market of the UAE,” it said.

Over the past 12 months, NMC has focussed on continuing its strategic growth through geographic diversification, organic expansion and the commencement of projects to both release synergies from acquisitions as well as create revenue enhancements from operating initiatives between our various Group businesses, it added.

The Group’s initial move into new geographies in the GCC is proceeding well with good performance experienced in its new assets in both Oman and Saudi Arabia, both of which are trading in line with management expectations.

During H1, 2017, total patient visits to group assets were 2.88 million, an increase of 36.2 per cent YoY. Revenue per patient in multi-specialty increased by 15.3 per cent to reach $134.4 and overall revenue per patient increased 8.2 per cent YoY to $183.5. This growth resulted from continuing focus on higher value procedures and specialties, increasing volumes and contribution in NMC Royal Hospital as well as good revenue per patient contributions from our newly acquired facilities, the company said.

The company’s contract to manage the Sheikh Khalifa General Hospital in Umm al Quwain was extended for a further five-year term, during the period. Additionally, it has signed a number of new contracts and the group will now be managing multiple private and public sector healthcare facilities across varied geographies, it added.  

Our Distribution division has continued its good growth trend of recent years with revenue growth of 14.7 per cent YoY, driven principally through the acquisition of new brands and products across its portfolio during the period.

Healthcare division
Total revenues across the company’s four Healthcare business verticals reached $561.1m (up by $171.3m or 43.9 per cent YoY). Revenue growth was achieved across the group’s assets with good performance delivered within the acquired assets, strong ramp up of its newly opened facilities as well as continued revenue growth across our three more mature specialty Hospitals.

Management structure update
Following the decision by Dr B R Shetty to step down from the position of CEO and executive vice chairman with the group in March 2017, and the board changes announced by the company in June 2017, the company has updated management structure for the group.

Dr Shetty took up the role of joint non-executive chairman in March 2017 and continues in this role. Khalifa Bin Butti re-joined the board in June 2017 as executive vice-chairman, and alongside his role as a director of the company, has a particular focus in assisting the board and management through his significant strategic connections and partnerships in the Middle East.

In addition to the above board changes, the revised management structure for the group reporting to Prasanth Manghat, CEO, is as follows:
* Chief Financial Officer: Prashanth Shenoy is promoted to the position of CFO with effect from September 1, 2017. Prashanth joined the Group in 2016 and has been deputy CFO and an integral member of the group’s M&A and projects team. Suresh Krishnamoorthy is stepping down from his position as CFO for personal reasons and will be taking sabbatical leave from the group. When he returns following this period of leave, he will take up a new group role focussing on strategic financial initiatives.
* Chief Investment Officer: Hani Buttikhi was appointed an executive director of the company in the role of chief investment officer. In addition to assisting the CEO in relation to group strategy, Buttikhi takes responsibility for the M&A, corporate development and investor relations functions.
*  Chief Operations Officer, Healthcare: Michael Davis is COO, Healthcare with responsibility for all healthcare operations of the group.

Prasanth Manghat, CEO, commented: “H1, 2017 has seen strong performance from our acquired businesses, newly opened facilities as well as continuing growth in our more mature facilities. Our acquisitions in Sharjah are performing well and we are very pleased with initial performance from our new Saudi Arabian and Oman operations, as we start to diversify operations from our primary UAE market into the GCC and beyond.” –TradeArabia News Service  

Tags: Dubai | NMC Health | helathcare |

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