Burjeel Holdings felt the impact of the Holy Month of Ramadan in such a significant manner that the company decided to announce two sets of numbers in the first quarter of 2025 – one, the mandatory set for the first three months of the year, and another for the months of January and February.
Group revenue rose 14.5 per cent YoY to AED909 million (US$247.5 million) during Jan-Feb 2025, in line with guidance and supported by an 8 per cent YoY increase in patient footfall and healthy surgical conversion rates and patient realisation.
Strong start, March slowdown
However, revenue in March declined due to the significant impact of Ramadan (February 28-March 29), which also led to delays in complex care conversion rates and a slower ramp-up across growth facilities.
Including the month of March, group revenue grew to AED1.3 billion (US$350 million), a 5.7 per cent increase from Q1 2024. Group patient footfall increased to 1.6 million, up 5.3 per cent, but down from the 8 per cent of the first two months.
EBITDA rose 20.3 per cent YoY in Q1 2025, despite the March slowdown, with EBITDA margin improving to 17 per cent from 15.7 per cent. Reported EBITDA came in at AED181 million (US$49.3 million) for the quarter, primarily due to the impact of Ramadan on incremental revenue growth for the quarter. Higher operational costs (+14.1 per cent YoY) also pressured incremental EBITDA growth.
Burjeel Medical City (BMC), the group’s flagship facility, saw revenue grow 11.2 per cent to AED315 million (US$85.8 million) for the quarter. The first two months accounted for AED226 million (US$61.55 million), up 17.8 per cent. Total patient volumes increased 14.7 per cent, but it was up at 20.4 per cent in the first two months.
John Sunil, Chief Executive Officer of Burjeel Holdings, commented: “The first quarter of 2025 presented a number of operational challenges, with group performance impacted by a sharper-than-anticipated slowdown in March and delays in the conversion of complex care programmes.
“While these factors led to a shortfall against internal expectations, a strong start in January and February, along with encouraging early signs in April, underscore the resilience of our platform and the sound fundamentals of the business.
“We are committed to maintaining strong financial discipline and enhancing cost control across the Group. In response to the market dynamics that affected performance this quarter, our team has taken decisive actions: realigning staffing levels, tightening procurement across high-cost categories, reprioritising marketing expenditures, and enforcing stricter controls in maintenance and support functions. In parallel, we have increased operational oversight in underperforming units to drive more consistent delivery.”
Sunil added that it was too early to adjust guidance for the year and that the group is taking measures to correct the course.
“While it is too early to determine if adjustments to full-year guidance are necessary, we remain committed to transparency as we evaluate evolving trends,” he added.
“Our long-term strategic direction remains unchanged. We are confident in the potential of our high-growth asset base and our focused approach to margin recovery.
“Our expanding presence in high-potential markets, together with the continued integration of complex care capabilities, including oncology, transplants, fertility, and advanced medical technologies, is broadening access to specialised care for a growing patient base. These investments are expected to deliver meaningful results over the coming quarters.
“With a clear strategy, disciplined execution, and a focus on restoring near-term momentum, Burjeel Holdings is well-positioned to drive sustainable long-term value for patients, partners, and shareholders.”
Medical oncology remained a key revenue driver for Burjeel, delivering 31.3 per cent YoY growth and accounting for over 50 per cent of total incremental revenue.
Burjeel added 188 doctors during 2024 and another 33 in the first quarter, which led to employees’ salaries rising 11.1 per cent YoY.
The group’s Hospitals segment remained a primary growth driver for revenue and contributed 88 per cent to total revenue during the quarter. Revenue from Hospitals rose 3.6 per cent to AED1,126 million (US$306.6 million), supported by higher inpatient and outpatient footfall across the network. Medical Centres segment achieved strong top-line growth of 16.9 per cent to AED108 million (US$29.4 million).
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