PureHealth posts triple digit net profit growth to AED491m in Q1

ABU DHABI / WAM

PureHealth Holding announced its financial results for the period ended on March 31, 2024. The group achieved robust revenue growth of 52%, reaching AED6.1 billion. The 85% year-on-year increase in hospital revenue is particularly noteworthy, totalling AED4.8 billion.
This growth was propelled by a 10% year-on-year surge in total patient volumes, reaching 1.5 million patients, and a 10% rise in bed occupancy rates to 71%. Furthermore, this upward trajectory was bolstered by the consolidation of recent 100% acquisitions of Sheikh Shakhbout Medical City (SSMC) in Abu Dhabi and Circle Health Group in the United Kingdom.
As a result of increased operational efficiencies and organic growth, the group’s net profit was notably strong at approximately AED491 million, up by around AED272 million from Q1 2023, with a margin improvement of approximately 2.5 percentage points to 8.0%.
PureHealth’s EBITDA has increased to approximately AED1.1 billion, a 127% increase year-on-year, with the EBITDA margin for Q1 2024 expanding to around 18% (compared to 12% in Q1 2023).
As of March 31, 2024, PureHealth reported total assets of approximately AED47 billion, up from around AED28 billion in Q1 2023, which includes a healthy total cash balance of AED8 billion. The Net Cash balance stood at approximately AED4.4 billion (excluding lease liabilities), resulting in a Net Cash to EBITDA ratio of 1.45x as of the last twelve months to March 31, 2024.
Commenting on the results, the Group’s Chairman Hamad Al Hammadi said, “PureHealth’s performance is setting us on a path to joining the ranks of top-tier global healthcare providers. The dedication of our employees is the cornerstone of this success, and their efforts continue to fuel our expansion across the UAE and internationally. We are committed to maintaining this momentum and driving further advancements in pursuit of our mission to advance the science of longevity in the years to come, delivering premium healthcare services to people in the UAE and beyond.”
Shaista Asif, PureHealth’s Group Chief Executive Officer, highlighted that the recent acquisitions of Circle Health Group and SSMC have expanded the hospital network to over 50 hospitals with more than 2,000 beds. This expansion reflects the group’s commitment to excellence and aims to create long-term shareholder value.
Additionally, the Sheikh Tahnoon bin Mohammed Medical City (STMC), inaugurated in 2023 with over 850 beds, is increasing its operations to meet rising demand in Al Ain. STMC is a significant addition to PureHealth’s portfolio and marks a milestone in its value-creation journey.
Alongside significant achievements in the hospitals segment, the insurance segment recorded a revenue increase of 13% year-on-year to AED1.6 billion in Q1 2024, driven by higher gross written premiums, reflecting the growing demand for Daman’s insurance offering. The procurement segment further supported revenue growth, with a 4% increase to AED1.1 billion in Q1 2024.