Raffles Medical first-half profit jumps 51.3% on Covid-19 services, return of medical tourism

SINGAPORE (THE BUSINESS TIMES) – Raffles Medical Group reported a profit of nearly $59.7 million for the half year ended June 30, a 51.3 per cent rise compared with the $39.4 million a year ago.

This came largely on the back of higher revenue from Covid-19-related services as well as a comeback in medical tourism as Singapore reopened its borders, it said in a regulatory filing on Monday (Aug 1).

Diluted earnings per share for the first half of the year gained 51.2 per cent to $0.0319 from $0.0211 in the year-ago period.

Revenue for the private healthcare provider saw an increase of 11.2 per cent to $382.3 million in the first half of 2022, from $343.8 million in the same period in 2021.

No interim dividend was declared for the half-year period. The group had earlier announced a change in practices starting in financial year 2021, to consolidate its interim and final dividends into an annual core dividend of up to half its average sustainable profit after tax and minority interests.

The board said it remained “cautiously optimistic” that the return of foreign patients seeking medical treatments in Singapore will continue, amid an ongoing Covid-19 battle and the emergence of new and more virulent or infectious strains.

Raffles Medical also expects to remain profitable for the rest of the year, although it flagged concerns in operational challenges from a tight labour market, inflationary cost pressures driven by the labour shortage, and a rise in oil prices from the ongoing Ukraine war.

Raffles Medical ended Friday one cent or 0.9 per cent higher at $1.15 before the results announcement.