Dubai: NMC Health, the Abu Dhabi-based healthcare operator, reported on Monday a 19.3 per cent increase in its net profit for the first half of 2018 as revenues jumped.
The company’s profits reached $116.7 million (Dh429 million) up from $97.8 million in the same half of 2017. Revenues rose 20 per cent in the same period to reach $932 million in the first six months of this year.
NMC Health, which is listed on the London Stock Exchange, said it continued to benefit from the introduction of mandatory health insurance in Dubai and increased growth in its hospitals in Sharjah.
The company also saw growth from its acquisition of CosmeSurge, a cosmetics business, as well as the acquisition of minority stakes in other companies, particularly in Fakih IVF.
In April 2018, NMC issued $450 million worth of convertible bonds in order to bring in more funding. The company said the bonds represent “the first step in realigning the group’s balance sheet, in line with its status as a member of the large cap FTSE 100 index.”
Prasanth Manghat, chief executive officer of NMC Health, said the new financing arrangements provide “a very strong financial base from which to continue to grow the business.”
“While we continue to apply strict criteria to our expansion opportunities, this backdrop gives us confidence in addressing any future funding requirements to support our ambitious growth plans,” he said in a statement.
“We therefore see continuing good growth potential across different parts of the group in 2019 and beyond, and remain confident in the long-term prospects of the business as we enter the second half of 2018.”
NMC said its healthcare division remained its primary driver of growth in the first half of the year, with revenues from the division up 25.8 per cent year-on-year to $706 million.