Audited Result Announcement For the Year 2022

Highlights of 2022 Performance

• Group’s Profit after Tax grew 71.7% to S$143.7 million 
  

• Group achieved 5.9% growth in Revenue to S$766.5 million 

• Revenue from Healthcare Services Division increased by 8.6% 

• Healthy cash position of S$252.1 million 

• Proposed Final Dividend of 3.8 cents per share  

MEDIA RELEASE

RafflesMedicalGroup reports Profit After Tax of S$143.7 million, increased 71.7 per cent

Singapore, 27 February 2023 – RafflesMedicalGroup (the Group) today reported its FY 2022 results, posting revenue of S$766.5 million, a 5.9 per cent increase over FY 2021, and Profit after Tax of S$143.7 million, a 71.7 per cent increase compared with FY 2021. 

With the reopening of borders and easing of COVID-19 related protocols in 2H 2022, the Group saw a return of foreign patients seeking medical treatment in Singapore. While the Group’s involvement in operating COVID-19 vaccination centres tapered off, it started Singapore’s first Transitional Care Facility in July 2022 for managing chronically ill patients from public hospitals to alleviate the burden on the public healthcare system.

For most of FY 2022, RafflesChinaHealthcare was impacted by China’s zero-tolerance policy for COVID-19. Although all three Raffles hospitals in China continued to operate during the respective lockdowns, the operations faced staffing constraints and interruption of patient access to its facilities. In December 2022 when China eased its zero-tolerance policy for COVID-19, the three hospitals supported the local community in government-led COVID-19 initiatives during this period.

Reflecting the return of patients to our clinics, revenue from the Healthcare division grew by 8.6 per cent to S$498.3 million. Revenue from the Group’s Hospital Services division decreased by 8.6 per cent to S$316.3 million, due to a decrease in the number of polymerase chain reaction (PCR) diagnostic tests carried out in FY 2022 as compared to FY 2021.

The Group’s earnings before interest, taxes, depreciation and amortisation (EBITDA) grew 47.0 per cent from S$160.6 million in FY 2021 to S$236.1 million in FY 2022. Profit After Tax and Minority Interests (PATMI) grew 70.5 per cent to S$143.5 million in FY 2022 from S$84.2 million in FY 2021. This was the result of better cost control and deployment of manpower, together with lower inventories and consumables used.

The Directors are pleased to recommend a final ordinary dividend of 3.8 cents per share for FY 2022 in view of the Group’s strong performance, an increase of 35.7 per cent as compared to the previous year.

Based on current conditions and barring unforeseen circumstances, the Directors expect the Group to remain profitable in FY 2023.

Business Updates

•      More foreign patients returning for medical treatments with resumption of global travel As the world transitions to living with COVID-19, the Group saw more local and foreign patients returning for treatment at RafflesHospital, RafflesMedical, and RafflesDental. The Group’s core business in Singapore is expected to continue its growth and expansion whereas the non core COVID-19 related business is expected to phase out. With China’s COVID-19 containment policies relaxed, local and expatriate patients can now return to seek treatment at the Group’s hospitals and medical clinics.

•      Customising healthcare solutions for both corporate and individual clients

With more than 46 years of offering quality healthcare solutions to patients, the Group continues to evolve and work with key corporate customers and clients across the 14 cities, to develop and offer integrated healthcare solutions that are tailored to meet their needs.

•      Exploring new business opportunities amidst economic challenges

Notwithstanding the headwinds of inflation, higher interest rates and possible interruption to supply chain, the Group will continue to improve its operational leverages of existing businesses. The Group will also explore new business opportunities as they arise.

“As we face the challenges brought about by a slower economic growth, we will continue to innovate and improve our service offerings to meet the evolving healthcare and wellness needs of patients, clients, and partners we serve and care for. Our core values of compassion, commitment, excellence, team-based care, and value will continue to guide Raffles staff to work as a team in delivering our service promise to our patients,” said Dr Loo Choon Yong, Executive Chairman, RafflesMedicalGroup.

For media queries, please contact:

Joanna Lee

Senior Manager, Communications

Raffles Medical Group

Email: lee_joanna@rafflesmedical.com