Burjeel’s first-quarter net profit up 45% on higher patient numbers

Net income for the January to March period increased to $32m

Revenue growth was driven by the company's flagship hospital, Burjeel Medical City. Reem Mohammed / The National

Abu Dhabi healthcare provider Burjeel Holdings reported an annual net profit increase of about 45 per cent in the first quarter of 2023, driven by higher revenue, better operational efficiencies and lower finance costs linked to a continuing debt reduction exercise.

Net profit for the three-month period ended March 31 surged to Dh118.7 million ($32.3 million), the company said in a filing to the Abu Dhabi Securities Exchange, where its shares are traded.

Revenue increased by about 12 per cent on an annualised basis to Dh1.08 billion, boosted by revenue growth of 32.6 per cent at the company's flagship hospital Burjeel Medical City.

Burjeel Holdings achieved “strong growth both in top-line and bottom-line, while making significant operational and strategic progress”, said its chief executive John Sunil.

“We achieved a major milestone in our geographic expansion, and launched The Paley Middle East Clinic, which provides specialised orthopaedic care for people with musculoskeletal conditions.

“Looking ahead, we remain focused on expanding our super speciality and yield-enhancing complex care offering, and adding significant capabilities to our team.”

Burjeel Holdings, founded in 2007 by Dr Shamsheer Vayalil, has a network of about 61 assets, including hospitals and medical centres, as well as pharmacies and other allied services 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.

Parent company VPS Healthcare Holdings continues to own a 70 per cent stake after the listing.

The IPO resulted in Dh2.2 billion of liquidity being injected into the business, Burjeel said.

In the first quarter, outpatient and inpatient footfall rose by 16.5 per cent and 26.9 per cent, respectively, due to the group’s investment in new specialities and enhanced utilisation across assets, the company said.

Revenue from the hospitals segment made up more than 88 per cent of the total revenue in the first quarter.

BMC, which opened in 2020 and is the UAE’s largest private hospital, contributed 20 per cent of the group’s hospitals segment revenue during the period.

Revenue from the hospital and the medical centres segments increased by 10.9 per cent and 24.8 per cent, respectively, the company said.

Earnings before interest, taxes, depreciation and amortisation for the group increased by 13.4 per cent annually to Dh241.6 million in the first quarter.

During the three-month period, Burjeel Holdings further reduced its debt by Dh29.1 million and group net debt stood at Dh1.06 billion as of March 31.

The company is currently pursuing international opportunities to provide operations and management services for healthcare centres, it said.

Last year, Burjeel said it planned to enter Saudi Arabia with an investment of up to $1 billion through joint ventures and public-private partnerships.

In February, it announced the formation of a joint venture with Leejam Sports Company, the owner and operator of Fitness Time centres in the Mena region.

The agreement will involve Burjeel and Leejam jointly establishing and operating a network of physiotherapy, rehabilitation and wellness centres within Leejam clubs across the kingdom.

Burjeel is also on track to add more than 120 new inpatient beds and five new medical centres across the UAE, it said.

“We remain positive on the outlook for Burjeel Holdings given our differentiated business model, facilities and strategy to increase asset utilisation and patient yield,” Mr Sunil said.

“Additionally, we continue to review partnership opportunities in the Middle East and Africa region, and we are actively evaluating various capex-lite opportunities for geographic expansion, further enhancing our growth prospects.”