Raffles Medical first-half profit jumps 54.4% on Covid-19 services, return of medical tourism

SINGAPORE (THE BUSINESS TIMES) – Raffles Medical Group reported a profit of nearly $60 million for the half year ended Jun 30, a 54.4 per cent rise as compared with $38.8 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 also gained 51.2 per cent to $0.0319 from $0.0211 in the year-ago period.

Revenue for the private healthcare provider also saw an increase of 11.2 per cent to $382.3 million in H1 2022, from $343.8 million in H1 2021.

No interim dividend was declared for the half-year period. The group had earlier announced a change in practises starting FY21, 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, against the backdrop of 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 they year, although it flagged concerns in operational challenges from a tight labour market, inflationary cost pressures driven by the labour shortage as well as 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.