UAE's NMC Health posts 36.5% rise in 2012 profit

London Stock Exchange-listed private healthcare firm reports profit of US$59.8m
By Courtney Trenwith
Tue 26 Feb 2013 03:19 PM

UAE-based private healthcare provider NMC recorded a 36.5 percent increase in net profit during 2012, to US$59.8m.

The company, which listed on the London Stock Exchange in April last year, released its full-year financial report on Tuesday.

It said revenue grew 10.5 percent to US$490.1m compared to 2011.

Revenue generated from healthcare rose the most, up 15 percent to US$251.6m, driven by occupancy levels that rose from 51.3 percent in 2011 to 60.5 percent in 2012.

Distribution revenue increased 7 percent to US$271.1m, with the expansion of product lines.

The company spent US$94.9m on capital expenditure last year, including US$82.3m on its four new projects.

In Abu Dhabi, Mussafah Day Patient Centre is expected to open in March, followed by Brightpoint Womens Hospital in Q3 2013 and Khalifa City Specialty Hospital’s initial 75 beds by the end of 2014.

The DIP General Hospital in Dubai is scheduled for completion by the end of 2013 with capacity for 60 inpatients.

The company said all its developments were on budget.

During 2012, NMC also acquired BR Medical Suites in Dubai for US$9m.

“Our full year results show that we have made strong progress across our existing facilities during 2012. 2013 will again be a year of transformation as we expect to open three of the four capital projects, which we committed to as part of our IPO, and which will help drive our future growth," said CEO Dr BR Shetty.

“In the coming year, we expect to benefit from new facility openings, and to focus on the primary healthcare segment and medical specialties where we believe there continues to be a lack of supply in the UAE."

In a statement, the company said 2013 already had started well, with revenue across both operating divisions in January showing growth over 2012.

Occupancy also had increased, particularly in Al Ain and Dubai specialty hospitals.

Even greater growth is expected this year as new facilities open and the healthcare sector in general increases.

Expanding mandatory health insurance outside Abu Dhabi would boost the company even further, it said it a statement.

Dubai Health Authority director general Essa Al Maidoor told Arabian Business this month he hoped mandatory health insurance would be introduced imminently.

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