The UAE hospital operator Burjeel Holdings reported a 13.9 per cent increase in revenue in the first half of 2023 at Dh2.2 billion, and a 47 per cent growth in net profit at Dh225 million.
The rise in revenue was primarily attributed to an 11.2 per cent increase in total patient footfall, with more than 2.9 million patients served during the half-year period. Inpatient bed occupancy also improved to 59 per cent in H1-2023, allowing for further expansion of key growth assets.
EBITDA growth was ahead of revenue, up 12.7 per cent year-on-year to Dh467 million.
This growth was attributed to higher revenues, enhanced operational efficiencies, and reduced finance costs due to ongoing debt reduction efforts.
The Board of Directors of Burjeel Holdings recommended an inaugural interim dividend of approximately Dh95 million, equivalent to around Dh0.02 per ordinary share, for H1-2023. This represents 42 per cent of the net profit achieved in the first half of the year. The record date for the dividend has been set as August 13, 2023, and the payment date is scheduled up to September 1, 2023.
“Burjeel Holdings is committed to increasing the proportion of high-yielding complex care and complex surgeries within its overall service mix, with a focus on driving top-line growth and medium-term margin expansion,” the hospital operator said in a stock market filing on Friday. “The company continues to diversify and expand the range of complex surgeries performed.”
Strong margin expansion
Key segments, such as Hospitals and Medical Centers, have shown strong margin expansion. The Hospitals segment remains the primary contributor to the Group's revenue, accounting for 88.7 per cent of total Group revenue for the period. The Hospitals segment experienced revenue and EBITDA growth of 14.2 per cent and 23.6 per cent, respectively, driven by increased patient footfall and a focus on advanced specialty services.
“During this period, our expansion plan gained substantial traction, preparing our first centers for open-ing in Saudi Arabia as part of our partnership with Leejam, a strategic move that reinforces our regional presence,” said John Sunil, CEO of Burjeel Holdings. “Our future growth will encompass further strategic geographic expansion, additional strategic alliances in the field of transformative and complex medical care and continuous enhancement of our state-of-the-art infrastructure.”
The EBITDA margin for the Hospitals segment also witnessed a notable improvement from 20.6 per cent in H1-2022 to 22.3 per cent in H1-2023. Similarly, the Medical Centers segment saw a 24.5 per cent increase in EBITDA, outpacing revenue growth of 13.7 per cent, with an EBITDA margin rise from 25.6 per cent in H1-2022 to 28.1 per cent in H1-2023.
Burjeel Medical City (BMC), the flagship hospital asset, has been a significant growth enabler, focusing on high-potential complex care services. In H1-2023, BMC achieved robust growth, witnessing a 34.5 per cent increase in revenue to Dh475 million, and a remarkable 70.9 per cent growth in total patient footfall. Inpatient bed occupancy at BMC grew from 29.7 per cent in H1-2022 to 43.5 per cent in H1-2023.