Raffles Medical reports 1H21 net profit more than doubled

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Raffles Medical Group reported Monday its first half net profit climbed 128.7 percent on-year to S$39.45 million as the hospital group supported Singapore’s Covid-19 vaccination and Polymerase Chain Reaction (PCR) swab tests initiatives.

Revenue for the six months ended 30 June increased 42.4 percent on-year to S$343.82 million, the hospital operator said in a filing to SGX before the market open.

The healthcare services division posted a 65.4 percent increase in revenue, while revenue from hospital services rose 35.4 percent.

“In Singapore, the group continues to support the government’s COVID-19 initiatives,” Raffles said in the statement. “Adapting to the ever-changing nature of the pandemic, it has expanded its operations beyond air-border screening and pre-event testing to include vaccination centres, pre-departure swabbing of cruise passengers, as well as operating dedicated polymerase chain reaction (PCR) testing centres to conduct tests for those exposed to new COVID-19 clusters as they emerge.”

The collaboration with Singapore’s Ministry of Health also puts the company in position to take in additional A&E patients to support public hospitals when they are closed to the public to handle Covid-19 cases, Raffles Medical said.

In addition, with China’s Covid-19 situation “largely under control,” the group’s business there is starting to return to normal, with both Raffles Hospital Chongqing and Raffles Hospital Beijing seeing improving patient loads amid an improving operating environment, the company said.

The newly completed Raffles Hospital Shanghai was recently awarded its operating license and will begin receiving patients from Monday, the statement said.

The company did not declare an interim dividend in line with its February announcement it would consolidate interim and final dividends this year into an annual core dividend of up to half its average sustainable net profit. This year, Raffles Medical said it expected to pay a total core dividend of at least 2.5 Singapore cents a share.

The outlook was upbeat.

“In view of the current conditions, and barring unforeseen circumstances, including the worsening of the COVID-19 situation where the Group operates, the Group expects to be more profitable for FY 2021 than FY 2020,” Raffles Medical said.