ABU DHABI, UAE – Burjeel Holdings on Friday announced its financial results in accordance with International Financial Reporting Standards (IFRS) for the six-month period ending June 30 2023.
The company reported H1 2023 net profit of US$61 million (AED225 million), up 47 percent y-o-y, attributable to robust topline growth and significantly lower finance costs.
Burjeel Holding reported revenue of US$599 million (AED2.2 billion), up 13.9 percent y-o-y during the first half of 2023, driven by higher inpatient footfall coupled with expansion in patient yield.
The company’s EBITDA increased by 12.7 percent y-o-y to US$127 million (AED467 million) in H1 2023. Burjeel Holdings maintained a steady EBITDA margin of 21.6 percent.
Outpatient footfall and inpatient footfall increased by 11.1 percent and 20.2 percent, respectively, primarily due to the Group’s investment in new specialities and services; a total of 2.9 million patients were seen in H1.
Burjeel Medical City saw strong footfall growth, driving revenue growth of 34.5 percent and EBITDA growth of 91.1 percent.
Leverage reduced further to 1.2x at the end of the period, reflecting continued operational excellence and cost management.
Debut interim dividend payment confirmed by the Board of Directors, totalling approximately US25.8 million (AED95 million) or AED0.02 per share. This interim dividend represents 42 percent of net profit for H1 2023.
For the second quarter, revenue growth accelerated to 16.3 percent y-o-y, delivering US$299 million (AED1.1 billion), and EBITDA up 12 percent y-o-y to US$61 million (AED225 million).
Second quarter net profit increased by 51.4 percent y-o-y to US$28 million (AED103 million).
Burjeel Holdings continues to deliver on its clear growth strategy of elevating utilization and patient yield while investing in expansion opportunities across MENA.
In line with its preferred capex-lite approach to network expansion, Burjeel recently agreed to operate and manage Abu Dhabi National Oil Company’s (ADNOC) largest healthcare facility in the Al Dhafra region, Al Dhannah Hospital.
The Group also put the final touches on the first of its PhysioTherabia clinics in KSA – the joint-venture network of sports medicine and rehabilitation centers established with KSA-listed Leejam Sports Company JSC.
PhysioTherabia expects to open 60+ clinics over the next 24 months, leveraging Leejam’s network of prime-location fitness centers and loyal member base.
Looking ahead, Burjeel Holdings remains well-positioned to capitalize on a robust pipeline of growth opportunities in the MENA region, with several capex-lite opportunities under advanced discussion.
Commenting on the achievements, John Sunil, Chief Executive Officer of Burjeel Holdings, said, “Burjeel Holdings has performed remarkably well in the first half of 2023, achieving robust topline and bottom-line growth while making significant strides in operational and strategic advancements.”
He said, “Burjeel Medical City, our flagship facility, continues to deliver remarkable growth, registering an impressive 34.5 percent revenue increase driven by substantial inpatient and outpatient footfall growth.”
He added, “During this period, our expansion plan gained substantial traction, preparing our first centers for opening in Saudi Arabia as part of our partnership with Leejam, a strategic move reinforcing our regional presence.”
Sunil said that the company confirmed the first interim dividend payment, to return approximately US$25.8 million (AED95 million) to shareholders in August 2023.
The hospitals segment remains the primary contributor to the Group’s revenue, comprising 88.7 percent of total Group revenue for the period, consistent with the previous year.
Revenue and EBITDA in the Hospital segment increased by 14.2 percent and 23.6 percent, respectively, driven by higher patient footfall and the Group’s continued focus on advanced speciality services.
EBITDA margin in the Hospitals segment witnessed notable improvement from 20.6 percent in H1 2022 to 22.3 percent in H1 2023.
EBITDA in the Medical Centres segment rose by 24.5 percent, outpacing revenue growth of 13.7 percent. EBITDA margin increased from 25.6 percent in H1 2022 to 28.1 percent in H1 2023.
In H1 2023, Burjeel’s flagship hospital asset, Burjeel Medical City, achieved robust growth, witnessing a 34.5 percent increase in revenue to US$129 million (AED475 million).
The hospital recorded an impressive 70.9 percent growth in total patient footfall during the same period.
Inpatient bed occupancy grew from 29.7 percent in H1 2022 to 43.5 percent in H1 2023, with outpatient capacity utilization rising from 31.8 percent to 38.9 percent over the same period.
Burjeel Holdings aim to pay cash dividends from 2023 onwards on the expected basis of a pay-out ratio of 40 percent to 70 percent of net profit, dependent on investment requirements for additional growth plans.
Burjeel Holdings’ Board of Directors have recommended a payout of AED95 million or AED0.02 per ordinary share as the debut interim dividend for H1 2023. This represents 42 percent of the net profit for H1 2023.
The record date for the dividend is set for August 13 2023, and the payable date is up to September 1 2023.