Burjeel Holdings has announced revenue growth of 10.4 per cent to Dh2.4 billion in H1’24, driven by solid patient footfall (+6.2 per cent YoY), a rising volume of complex medical procedures, and improvement in patient yield.
Outpatient and inpatient revenue increased by Dh137 million (+10.3 per cent YoY) and Dh82 million (+11.0 per cent YoY), respectively. Group revenue growth primarily resulted from a hike in medical oncology in the service mix (+64.1 per cent YoY), contributing around 30 per cent of its incremental growth.
The Group’s performance was supported by robust inpatient footfall growth of 13.6 per cent in H1’24 from strong demand for Burjeel’s advanced care service offerings. On the back of growing demand for complex oncology care, the Group delivered 7,100 medical and surgical oncology procedures (+41.3 per cent YoY) and 4,200 radiation oncology sessions (+42.7 per cent YoY). Growth in inpatient footfall was driven by Burjeel Medical City, Burjeel Specialty Hospital Sharjah, Medeor Hospital Dubai, and Burjeel Royal Hospital Al Ain.
Burjeel Holdings accelerated outpatient footfall by increasing the range and capacity of medical services offered. Growth in outpatient footfall was driven by Burjeel Medical City, LLH Salalah, Burjeel Day Surgery Center Al Reem and Burjeel Royal Hospital Al Ain.
Group Ebitda ex-one-offs grew by 2.2 per cent to Dh477 million despite a rise in direct costs from ongoing investments in medical oncology to unlock future higher-yield patient footfall. Group Ebitda growth also reflected the impact of the ramp-up of new assets and higher overhead costs due to investments in medical tourism development and regional expansion.
Group net profit ex-one-offs & taxes2 rose by 5.9 per cent to Dh238 million, on the back of revenue growth and lower finance and depreciation costs.
The hospitals segment remains the Group’s primary driver of revenue and contributed 88 per cent of total group revenue in H1’24, consistent with previous periods. Group bed occupancy rose to 64 per cent in H1’24, indicating there is room for further ramp-up within the existing infrastructure.
Hospitals revenue and Ebitda increased by 9.2 per cent and 8.6 per cent, respectively, in H1’24, mainly driven by higher inpatient and outpatient footfall resulting from the growth in medical oncology, as well as other advanced specialty services, including organ transplants, fetal medicine, pediatric sub-specialties and orthopedics.
The medical centers segment, which plays a significant role as the Group’s key referral source, delivered robust revenue growth of 13.3 per cent in H1’24. Within the segment, specialty care departments such as obstetrics, gynecology, pediatrics, orthopedics, and cardiology, rapidly ramped up. Medical Centers Ebitda, excluding PhysioTherabia performance, increased by 12.9 per cent to Dh66 million.
Burjeel Medical City (BMC) contributed 26 per cent to total revenue in the Hospitals segment in H1’24. The segment still has significant utilization headroom, highlighting its continued potential to contribute to long-term value-creation.
BMC delivered a 20.8 per cent increase in revenue to Dh574 million and an outstanding 41.2 per cent increase in Ebitda to Dh93 million in H1’24. BMC achieved a 26.5 per cent increase in patients, demonstrating the strong demand for Burjeel’s expertise in the super-specialty segment. Bed occupancy reached 57 per cent in H1’24, up by 13 p.p. compared to H1’23.
John Sunil, Chief Executive Officer of Burjeel Holdings, said: “In the first half of 2024, Burjeel Holdings delivered robust top-line growth, acceleration in patient footfall and continued market penetration. We also made significant progress against key strategic and operational milestones. “Burjeel is well-positioned to achieve strong growth and profitability, in line with our guidance. We believe that performance in the second half of 2024 will be driven by the rapid ramp-up of high-growth assets and high-yield services, as well as fast growth in international and domestic patient footfall.”