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Emirates Business
NMC Health plc (LSE:NMC) (‘NMC’), the leading integrated private healthcare network operator in the GCC region including United Arab Emirates and one of the leading global providers of fertility treatments through its European, South American and Middle Eastern subsidiaries, announced its interim results for the six months ended June 30, 2017.
The net profit in H1 2017 reached $97.8 million, which represented a surge of 38.8% from $70.5 million recorded in the same period last year.
The reported revenues increased by 34.0% year-on-year (compared to H1, 2016) to reach $775.2m in H1, 2017 ($ 578.3m in H1, 2016). EBITDA reached $170.7m (+47.3% YoY), resulting in a Group EBITDA margin of 22.0% (+200bps YoY); Healthcare business verticals contributed 86.9% of Group EBITDA in the period, up from 84.7% in H1, 2016.
Prasanth Manghat, Chief Executive Officer, said: “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.
The adjusted Net profits attributable to shareholders increased to $105.7m (+56.0% YoY). Basic EPS reported at $0.429 (H1, 2016: 0.336); Diluted EPS at $0.426 (H1, 2016: $0. 334); Adjusted EPS at $0.514 (H1, 2016: $0.363). The new Management Structure announced to ensure a solid management foundation for further strategic growth.
NMC Health produced strong performance in H1, 2017 with good progress seen across all parts of the Group. The 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.
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 various Group businesses.
During H1, 2017, total patient visits to Group assets were 2.88m, an increase of 36.2% YoY. Revenue per patient in multi-specialty increased by 15.3% to reach $134.4 and overall revenue per patient increased 8.2% 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 newly acquired facilities.
In the Operations and Management vertical, the contract to manage the Sheikh Khalifa General Hospital in Umm al Quwain was extended for a further 5 year term. Additionally, we have signed a number of new contracts and the Group will now be managing
multiple private and public sector healthcare facilities across varied
geographies.
The Distribution division has continued its good growth trend of recent years with revenue growth of 14.7% YoY, driven principally through the acquisition of new brands and products across its portfolio during the period. Whilst we believe that the Distribution business is well placed to return continued solid performance, consolidated Group margins continue to benefit from the strategic aim of relative dilution of the Distribution vertical with Healthcare division businesses contributing 70.5% of Group revenues compared to 65.5% in H1, 2016 and 48% at the time of IPO in 2012.
