Abu Dhabi healthcare provider Burjeel Holdings reported a more than 55 per cent annual increase in second-quarter net profit, driven by higher revenue across its operations.
Net profit attributable to the owners of the company for the three months to the end of June climbed to Dh94.9 million ($25.8 million), from Dh61.1 million a year ago, the company said on Friday in a filing to the Abu Dhabi Securities Exchange, where its shares are traded.
Revenue rose by 16 per cent on an annualised basis to Dh1.08 billion, from Dh926.4 million a year ago. Earnings before interest, taxes, depreciation and amortisation (ebitda) rose to Dh225 million, from Dh201 million a year ago.
The growth in revenue was underpinned by its flagship Burjeel Medical City in Abu Dhabi, which registered a 34.5 per cent jump in revenue to Dh475 million during the first half of 2023, driven by substantial growth in inpatient and outpatient footfall.
The hospital posted a 71 per cent growth in total patient footfall during the six-month period, with inpatient bed occupancy growing to 43.5 per cent, from 29.7 per cent a year ago, while outpatient capacity utilisation rose to 38.9 per cent, from 31.8 per cent last year.
“We worked strategically with our four pillars – ramping up the growth of our assets, increasing patient teams, operational efficiencies and geographical expansion. This has been our core focus for our growth strategy for this year,” John Sunil, chief executive of Burjeel Holdings, told The National in an interview on Friday.
The company expects to grow further as it prepares to open its first facilities in Saudi Arabia, a move aimed at reinforcing its regional presence, he said.
Burjeel in February signed a preliminary agreement with Saudi Arabia's Leejam Sports Company to set up more than 60 clinics in the kingdom as part of its regional expansion. That followed its announcement last year that it will invest up to $1 billion in the Arab world’s biggest economy by 2030.
The company is looking at Egypt, the Arab world's most populous country, for its next expansion project, Mr Sunil said.
“There are a lot of good projects in Egypt, and we are looking into whether it will fit into our criteria,” he said.
“We are concentrated into a few markets and our focus has been into service, specialised care and complex care. We want to take in our expertise like what we did from the UAE to other countries.”
Mr Sunil did not provide a timeline for Burjeel's foray into Egypt, as it will depend on “how negotiations go, and if the returns are really good, we'll look into it”, he said.
Burjeel also confirmed its first interim dividend payment, with the company planning to return approximately Dh95 million to shareholders this month, representing about 42 per cent of its first-half profit, Mr Sunil said.
For the first half of 2023, Burjeel’s profit surged to Dh213.7 million, from Dh143.3 million in the same period last year.
Revenue in the January-June period grew 13.6 per cent to Dh2.16 billion, from Dh1.9 billion a year ago, while ebitda rose 12.7 per cent to Dh467 million, from Dh414 million in 2022.
“Burjeel Holdings has performed remarkably well in the first half of 2023, achieving robust top-line and bottom-line growth while making significant strides in operational and strategic advancements,” Mr Sunil said.
Burjeel Holdings forged a number of partnerships during the first half, teaming up with Northwell Health, the largest healthcare provider in the state of New York, to launch an advanced neuroscience institute in Abu Dhabi.
The company also partnered with BridgeBio Pharma for early diagnosis and treatment of rare diseases in the region, and launched the Advanced Gynaecology Institute at Burjeel Medical City, which offers advanced and comprehensive care for the specialty.
Burjeel Holdings, founded in 2007 by Shamsheer Vayalil, has a network of 62 assets, including 16 hospitals, 24 medical centres, 15 pharmacies and other allied services across its key brands – Burjeel, Medeor, LLH, Lifecare and Tajmeel – throughout the UAE and Oman.
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.