Singapore, 22 February 2021 – RafflesMedicalGroup (the Group) reported a robust FY2020 performance, posting revenue growth of 8.8% to S$568.2 million in FY2020, from S$522.0 million in FY2019, in spite of a challenging market environment as a result of the global pandemic. 

In the first half of FY2020, the Group faced critical challenges as a result of COVID-19. Across the regional network, clinics faced lockdown measures and suspension of non-essential clinical services, deferment of elective surgeries and restrictions of travel for foreign patients seeking treatment in Singapore. As a result, 1H2020 saw the Group reporting a 5.4% lower revenue of S$241.4 million and a 38.2% lower Profit After Tax and Minority Interests (PATMI) when compared to 1H2019. The Government’s timely support enabled the Group to retain all staff and avoid any retrenchment. In response to the impact on the Group’s operations, staff members of the Group’s workforce were effectively redeployed to support the Government’s national projects in the fight against COVID-19. Physicians, nurses and supporting staff took on a new spectrum of COVID-19 project initiatives such as air border screening, COVID-19 testing of foreign workers and incoming air travellers as well as caring for thousands of COVID-19 positive foreign workers and recovering patients at community isolation facilities.

In addition, the Group initiated new services such as the COVID-19 Polymerase Chain Reaction (PCR) and serology testing, while expanding care for more subsidised acute patients under the existing Emergency Care Collaboration (ECC) with the Ministry of Health (MOH). To support these initiatives, the Group expanded its flexible workforce by 1,300 across the year.

The Group’s PATMI for FY2020 grew 9.3% to S$65.9 million from S$60.3 million in FY2019. The Group’s earnings before interest, taxes, depreciation and amortisation (EBITDA) grew 17.6% to S$123.9 million in FY2020 from S$105.4 million in FY2019.

As at 31 December 2020, the Group had cash and cash equivalent of S$202.1 million. Reflecting a healthy and strong balance sheet, the Group’s net gearing remains low at 0.2%.

Dividends

The Directors are pleased to recommend a final dividend of 2.0 cents per share. Including the interim dividend of 0.5 cent per share paid in October 2020, the total dividend payable for the year will be 2.5 cents per share. The Group will not be providing the Scrip Dividend option this year.

With effect from FY2021, the Board proposes to consolidate its interim and final dividends into a single annual core dividend of up to half its average sustainable PATMI. Where appropriate, after the consideration of a core dividend payment, share buybacks, the financial resources needed for continued growth and the gearing level of the Group, the Board may consider paying a special dividend. This is in recognition that the Group is in a growth phase, with low gearing and an intention to grow earnings on a per share basis, reflecting a holistic capital management framework. This framework was also used in the decision not to offer a scrip dividend option for this year.

For the transition year FY2021 and barring unforeseen circumstances, the Group expects to pay a total core and special dividend of not less than 2.5 cents per share.

In view of the current conditions, and barring unforeseen circumstances, including the volatile COVID-19 situation, the Group expects to remain profitable for the rest of the year.

Business Updates

Continuing to support Singapore in the fight against COVID-19

• With the recovery of the COVID-19 situation and uplifting of lockdown measures in Singapore and our overseas operations, RafflesMedical has observed local patient loads gradually returning back to pre-pandemic levels in 2H2020. This is supported by the resumption of deferred appointments and surgeries due to lockdown measures, as well as new growth in speciality areas like mental wellness.

• Due to the ongoing travel restrictions, foreign patients are still unable to seek treatment in Singapore. This looks likely to continue in the foreseeable future.

• In Singapore, RafflesMedical remains committed to partnering the Government in its COVID-19 efforts. In 2020, the Group has been involved in multiple projects relating to COVID-19, from air border screening, to activating COVID-19 testing capabilities with the COVID-19 PCR and serology testing. The Group is currently actively involved in Singapore’s national vaccination drive, with the operationalisation of four dedicated vaccination centres to date. More of such vaccination centres will be setup all across Singapore progressively.

Strengthening presence in China

• In 2020, the COVID-19 pandemic posed disruptions to operations in China. The Group is primed to capitalise on the growth opportunities in the market through its ongoing efforts to deepen and strengthen its presence in China.

• RafflesHospitalChongqing, the Group’s first hospital in China, saw a marked improvement in patient loads as compared to 2019.

• The Group completed upgrading the Beijing clinic to RafflesHospitalBeijing which now has the capability to support inpatient services and to offer minimally invasive surgeries, in addition to other services such as a 24-hour emergency clinic and diagnostic services such as Computed Tomography (CT) and Magnetic Resonance Imaging (MRI) scans.

• RafflesHospitalShanghai is in the midst of preparations to receive patients at the Hospital in the second quarter of 2021 with fitting out works, installation and commissioning of major medical equipment nearing completion.

• The progress of the Group in China emphasises the commitment to providing the Raffles’ brand of quality, and our Group Practice Model of healthcare to patients in the market.

Expanding the Group’s digital healthcare offering

• COVID-19 continues to impact and affect traditional business models. The Group will continue in its investment and commitment in developing its digital platform RafflesConnect to build reach and improve patients’ experience, continuing to offer our foreign patients access to our doctors and specialists through teleconsultation and medication delivery.

• RafflesConnect has been an instrumental pillar in ensuring the Group’s patients continue to have uninterrupted access to healthcare services. With the enhanced digital platform, patients enjoy quality and seamless care through services like 24/7 teleconsultation, pre-booking of appointments and tests as well as prescription delivery among other services.

The Group remains optimistic that operations across its network will begin to return to normal in 2021. However certain cities where the Group has operations may still be subject to sporadic localized outbreaks and lockdowns from COVID-19. 

Dr Loo Choon Yong, Executive Chairman, RafflesMedicalGroup said, “The COVID-19 pandemic is an unprecedented challenge for the world, one that has disrupted businesses and livelihoods. Yet its impact is even more acute in the healthcare environment where our frontline workers and members of the Group are constantly tackling the many disruptions COVID-19 has brought. Each day they go above and beyond to deliver on our promise to our patients and corporate clients, as their trusted partner for health. The resilience, dedication and agility of our workforce, coupled with the strategic investments and austere planning by the Group have allowed us to emerge stronger amidst this pandemic, with a healthy performance to give back to our shareholders and staff who have contributed. Looking forward, we will continue to reinvest in our business, drive efficiencies across the Group’s operations and strengthen core capabilities to transform RafflesMedicalGroup to be the healthcare company for the future. We remain focused on abiding by our mission to deliver value to all our patients and clients, through quality healthcare that is empathetic, compassionate and seamless - a true partner for all their health and wellness needs.

He added, “In 2021 the Group marks its 45th year since inception and recommits itself to serving the communities we operate in. The Group will be setting aside 1% of its PATMI for the next five years starting in FY2021, dedicated to corporate philanthropic programmes, a key pillar of our Environmental, Social and Governance (ESG) strategy. This is a commitment that extends beyond philanthropic giving, but it is a Group-wide effort that will engage and inspire our employees and stakeholders alike, to abide by the care we owe to our communities. As a healthcare company and a home-grown Singapore brand, our unique Raffles’ experience, expertise and infrastructure will empower us to make a significant difference and impact many lives in our communities.”

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For media queries, please contact:

Yong Shi Yun

Senior Manager, Brand Communications

Raffles Medical Group

Tel: +65 9644 4939

Email: yong_shiyun@rafflesmedical.com

Amanda Chong

Assistant Manager, Brand Communications

Raffles Medical Group

Tel: +65 8200 5363

Email: chong_amanda@rafflesmedical.com