Burjeel’s 2023 profit surges 52% on revenue boost from increased patient footfall

Abu Dhabi healthcare provider expects strong growth in Saudi Arabia

Doctors in an operating theatre at Burjeel Medical City. Photo: Burjeel Medical City
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Abu Dhabi healthcare provider Burjeel Holdings reported a more than 52 per cent increase in its 2023 net profit on higher revenue, driven by rising patient footfall in its hospitals.

Net profit attributable to equity holders for the 12 months to the end of December climbed to Dh516.1 million ($140.5 million), the company said in a statement to the Abu Dhabi Securities Exchange, where its shares are traded.

Revenue grew about 16 per cent year on year to Dh4.5 billion as in-patient and outpatient footfall at its hospitals rose 17.5 per cent and 8.3 per cent, respectively, to reach more than six million.

Burjeel's flagship hospital asset, Burjeel Medical City, recorded revenue growth of more than 37 per cent annually to Dh1 billion in 2023.

Finance costs also fell during the period, boosting the profit of the company.

Group earnings before interest, taxes, depreciation and amortisation (Ebitda) rose 18 per cent to Dh1 billion for the January-December period amid growth of assets.

“Our specialised healthcare segment in the KSA [Saudi Arabian] market is strategically pivotal and I expect considerable growth in the kingdom," said Shamsheer Vayalil, founder and non-executive chairman of Burjeel Holdings.

"I am fully confident that our geographic expansion strategy and focus on complex and super-specialty care, supported by our growing referral network, will yield improved asset utilisation and lead to revenue and margin growth, providing greater appeal to investors.”

Burjeel Holdings, founded in 2007 by Mr Vayalil, has a network of 76 assets including hospitals, medical centres, pharmacies and other allied services across its key brands – Burjeel, Medeor, LLH, Lifecare and Tajmeel – throughout the UAE, Oman and Saudi Arabia.

Its initial public offering on the ADX in October drew strong demand from investors in the UAE and the region, and was more than 29 times oversubscribed. The IPO resulted in Dh2.2 billion of liquidity being injected into the business.

The company aims to expand its hospital network in the next two years with plans to open one hospital in Dubai, day surgery centres in Al Ain and Al Dhafra regions, as well as one medical centre in Abu Dhabi.

It also plans to launch two specialised day surgery centres in Riyadh as part of its expansion plans in the kingdom.

"The UAE and KSA, Burjeel’s two main markets, continue to experience favourable macro tailwinds, with strong predicted mid-term GDP growth, rapid population growth and increasing demand for added healthcare capacity," the company said.

"Regional aspiration to expand the non-oil-based economy will boost the demand with limited supply in a regulated environment, strongly driving the group's performance."

Last year, the company signed a preliminary agreement with Saudi Arabia's Leejam Sports Company to set up more than 60 centres in the kingdom as part of its regional expansion.

That followed its announcement the previous year that it would invest up to $1 billion in the Arab world’s biggest economy by 2030.

In 2024, the group's revenue is expected to grow in the mid-teens.

For the 2025-2027 period, its revenue is forecast to normalise from the mid-teens to the low double-digits gradually, the company said in its earnings guidance.

It aims to maintain capex levels of 2.5 per cent of its revenue for the period.

Updated: March 07, 2024, 8:32 AM