Burjeel's 2022 net profit jumps 52% on higher hospital patient numbers

Net income for the January to December period surged to more than $96.5m

Hisham Malak, chairman of Abu Dhabi Securities Exchange, left, Omran Al Khoori, Burjeel Holdings board director, rear right, and Saeed Hamad Al Dhaheri, chief executive of ADX look on as Burjeel Holdings chairman Dr Shamsheer Vayalil rings the bell to announce the company's listing on the ADX. Victor Besa / The National
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Abu Dhabi healthcare provider Burjeel Holdings reported an almost 52 per cent jump in 2022 net profit, driven by an increase in hospital patient numbers.

Net income for the January to December period surged to more than Dh354.5 million ($96.5 million), the company said in a statement to the Abu Dhabi Securities Exchange (ADX), where its shares are traded.

The company’s revenue surged more than 17 per cent on an annualised basis to Dh3.92 billion, driven by nearly 125 per cent revenue growth at its flagship hospital Burjeel Medical City (BMC), the company said.

Hospital inpatient numbers increased by 17 per cent, outpacing outpatient footfall growth of 15 per cent.

Both inpatient and outpatient growth was driven by the “ramp-up of growth assets and the addition of new services”, the company said.

“2022 was a milestone year for Burjeel Holdings … expanded our offering, particularly in the provision of highly specialised and complex care in our core markets,” Dr Shamsheer Vayalil, chairman of Burjeel Holdings, said.

“With record earnings and a robust balance sheet in place following our IPO [initial public offering], the group is well positioned to accelerate growth, by deepening expertise in complex care, driving expansion into new markets and elevating utilisation and patient yield,” Mr Vayalil said.

In October, Burjeel’s IPO drew strong demand from investors in the UAE and the region and was more than 29 times oversubscribed.

Its shares surged as much as 20 per cent above the listing price on October 10, as the company made its debut on ADX. The IPO resulted in Dh2.2 billion of liquidity being injected into the business, Burjeel said.

“Our focus on the provision of high-quality complex care is a crucial part of the strategy we presented during our IPO,” John Sunil, chief executive of Burjeel Holdings, said.

“The positive performance we delivered in 2022 reflects the successful execution of this strategy and we expect to maintain this momentum in 2023 with strong revenue and margin growth,” he added.

In its 2023 fiscal guidance, the company expects its revenue to grow “organically in the high-teens”. The BMC revenue is expected to grow more than 1.5 times, Burjeel said.

A patient at Burjeel Medical City’s Bone marrow transplant unit. Photo: BMC

The company’s revenue from the hospitals segment, which made up to 88 per cent of the total sales last year, increased 18 per cent year-on-year to almost Dh3.47 billion.

The medical centres segment, which accounted for 10 per cent of the company’s revenue, increased to Dh381 million.

Burjeel Holdings, founded in 2007 by Dr Vayalil, has a network of about 61 assets, including hospitals and medical centres, as well as pharmacies and other allied services throughout the UAE and Oman.

Last year, the company said it planned to enter Saudi Arabia, with investments of up to $1 billion through joint ventures and public-private partnerships.

Earlier this month, Burjeel announced the formation of a joint venture with Leejam Sports Company, the owner and operator of ‘Fitness Time’ branded fitness centres in Middle East and North Africa region. The agreement will involve Burjeel and Leejam jointly establishing and operating a network of physiotherapy, rehabilitation and wellness centres in Leejam clubs across the kingdom.

Updated: February 10, 2023, 3:17 PM