Abu Dhabi: UAE’s largest healthcare entity, PureHealth Holding PJSC, announced Wednesday a 53 per cent year-on-year increase in revenue to Dh12.5 billion for H1 2024, resulting in a net profit of Dh1 billion.
Following solid growth across its verticals, including hospitals, insurance and procurement segments, the group’s EBITDA grew 15 per cent year-on-year to Dh 2.2 billion, and it recorded a margin of 17.2 per cent in the first half of the year.
Hamad Al Hammadi, Chairman of PureHealth said, “I am pleased to report that the Group has closed out the first half of 2024 with strong performance, which reflects the continued trust our patients place in the quality and breadth of our services.”
Revenue breakdown
According to the earnings statement posted on ADX, hospital revenue grew 83 per cent year over year to Dh 9.6 billion in H1 2024.
This was primarily driven by the contributions generated from the group’s acquisitions of Sheikh Shakhbout Medical City (SSMC) and Circle Health Group during the period.
Insurance segment revenues grew 15 per cent year over year to Dh 3.3 billion in H1 2024 due to an overall increase in premiums, specifically from the enhanced Insurance portfolio, and the rise in the segment’s total number of active members to 3.1 million in H1 2024 compared to 2.9 million in H1 2023.
Accordingly, the segment’s revenue was also supported by higher patient volumes. Outpatients grew by 17 per cent, and inpatients were up 43 per cent year over year.
Emergency department patient numbers went up 43 per cent as well. Moreover, the company reported an 11 per cent increase in overall bed occupancy to 72 per cent and the addition of the National Rehabilitation Center (NRC) to PureHealth’s portfolio during the period.
The procurement and supply of medical-related services segment recorded revenue growth of 36 per cent year over year to Dh 2.7 billion in H1 2024. This was possible as the group onboarded new customers and executed strategic expansions in diagnostics and medical devices, as well as across the pharmaceutical and diabetes divisions.
Expansion strategies
PureHealth Group acquired a 100 percent stake in Circle Health Group—one of the UK’s largest independent hospital operators—and SSMC, a UAE-based healthcare complex known for its stem cell therapy facilities and top-tier clinical expertise.
Moreover, the group also offloaded its investments in Yas Clinic Group and Abu Dhabi Stem Cell Center (ADSCC) from April 1, 2024. “These divestments enabled PureHealth to focus on advancing the specialised healthcare services previously provided at ADSCC and Yas Clinic, now fully integrated into SSMC.
Shaista Asif, Group Chief Executive Officer at PureHealth, said, “The first half of the year has seen us continue to deliver on our growth strategies as we are actively pursuing expansion across both the local and international stages and have delivered on those fronts through the acquisition of Circle Health Group and SSMC.”
She added, “These assets provide us with additional avenues for growth within our Hospitals segment, allowing us to serve a broader patient base across the UAE and establish a more robust international presence.
Future profitability
In terms of profitability, the Group’s EBITDA grew 15 per cent year over year to Dh 2.2 billion in H1 2024 and yielded an EBITDA margin of 17.2 per cent during the period. The Group's net profit for H1 2024 is Dh 1.0 billion, reflecting a net profit margin of 8.0 per cent.
Shaista said, “Looking ahead, the strong foundation we have built in the first half of 2024 positions us perfectly to capitalise on exciting opportunities and maximise the value creation opportunities for our shareholders. Our commitment to executing on an attractive acquisition pipeline and the group’s continuous innovation through its technology segment will continue to fuel our growth engine.”
