Raffles Medical reports 2018 net profit was nearly flat on higher taxes and depreciation

Singapore two-dollar bills

Raffles Medical Group reported on Monday its full-year net profit was up just 0.4 percent on-year at S$71.06 million, amid higher taxes and depreciation expenses.

Revenue for the 12 months ended 31 December increased 2.4 percent on-year to S$489.14 million, and other operating income increased 34.0 percent on-year to S$5.14 million, it said in a filing to SGX before the market open on Monday.

The healthcare services division posted a 6.0 percent revenue rise, while the hospital services division saw revenue slip 0.8 percent on-year, it said.

“The increase in revenue from healthcare services division was due to contributions from a new contract to provide Air Borders screening services as well as the addition of new corporate clients,” Raffles Medical said. “Revenue from the hospital services division in 2018
reduced marginally partly due to the refurbishment of the current inpatient facilities in 2018.”

However, depreciation of property, plant and equipment — or assets including buildings and land — increased 19.3 percent on-year to S$17.17 million from the recently completed Raffles Specialist Centre, which adjoins the Raffles Hospital Singapore, while the tax expense rose 9.7 percent on-year to S$13.33 million, Raffles Medical said.

The healthcare services company proposed a final dividend of 2.0 Singapore cents a share, which including the 0.5 Singapore cent interim dividend, brings the total dividend for the year to 2.5 Singapore cents, up 11.1 percent on-year.

In its outlook, Raffles Medical said that Raffles Hospital Chongqing obtained regulatory approvals at end-December and opened to patients at the beginning of the year.

“Raffles Hospital Chongqing will progressively open up more inpatient beds and other facilities in response to demand from patients and corporate clients,” it said.

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