Burjeel's Q3 net profit up nearly three times on revenue boost

Abu Dhabi healthcare provider's net profit for three-month period rose to $35 million

Doctors operate on a patient at Burjeel Medical City. The company's in-patient and out-patient revenue during the first nine months of the year rose. Photo: Burjeel Medical City
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Abu Dhabi healthcare provider Burjeel Holdings reported a nearly threefold annual growth in its third-quarter net profit as revenue rose on the back of strong performance in its hospitals segment.

Net profit attributable to the equity holders of the company for the three months to the end of September rose to Dh128.67 million ($35 million), the company said on Monday in a filing to the Abu Dhabi Securities Exchange, where its shares are traded.

Revenue during the period increased to Dh1.15 billion, up from Dh933 million during the third quarter of last year.

For the nine-month period, net profit attributable to equity holders rose 80 per cent annually to Dh342 million, driven by a 17 per cent rise in revenue to Dh3.3 billion.

Revenue increased on the back of utilisation growth and improvement in patient yield in the hospitals and medical centres segments, where revenue increased by 17.9 per cent and 15.3 per cent, respectively, Burjeel said.

In-patient and out-patient revenue during the nine-month period rose by Dh241 million and Dh212 million, respectively.

Group earnings before interest, taxes, depreciation and amortisation (Ebitda) rose 19.5 per cent to Dh727 million in the January to September period.

The company recorded “strong growth both in topline as well as bottomline while making significant operational and strategic progress”, it said.

Burjeel expects to grow further as it expands in Saudi Arabia, a move aimed at reinforcing its regional presence, its chief executive John Sunil told The National in August.

The company in February 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 last year that it would invest up to $1 billion in the Arab world’s biggest economy by 2030.

This month, Burjeel announced the opening of its first PhysioTherabia centres in Riyadh, in partnership with Leejam Sports Company, which offer advanced physiotherapy, rehabilitation and wellness.

The newly opened PhysioTherabia centres are in Riyadh’s Olaya View Fitness Time, Al Munsiyah Men’s Gym, Al Munsiyah Ladies Gym and Al Taawon Men’s Gym, with the next 16 centres scheduled to “launch soon”, Burjeel said.

That will include 10 in Riyadh, two in Jeddah and one each in Dammam, Al Khobar, the Northern Region and the Southern Region.

By 2027, the network of 60 PhysioTherabia centres is expected to contribute at least Dh600 million to the group’s revenue, the company said.

Burjeel Holdings, founded in 2007 by Shamsheer Vayalil, has a network of hospitals, medical centres, 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.

Updated: October 30, 2023, 5:39 PM