The Abu Dhabi-headquartered Burjeel Holdings reported a first-quarter revenue growth of 11.1 per cent to Dh1.2 billion and a 16 per cent surge in adjusted net profit to Dh141 million compared to the same period last year.
The 2024 quarterly results of the healthcare service provider with 82 assets were propelled by an 11 per cent rise in the inpatient footfall at its 17 hospitals and 42 medical centres spread across the UAE and Oman and its recent expansion in Saudi Arabia.
The group’s hospitals continued to be a core driver of its performance by delivering 90 per cent of the total revenue led by its flagship quaternary care Burjeel Medical City (BMC), which registered 21.8 per cent growth at Dh283 million.
BMC contributed 26 per cent to the total hospitals’ revenue with higher footfalls and ramp-up of super-specialty services, including opening a thyroid parathyroid centre and the UAE’s first-of-its-kind OncoHelix-CoLab – both in a cross-border collaboration.
The net profit from all the hospitals jumped more than 31 per cent to Dh137 million.
Buoyed by the Q1 results, Burjeel Holdings CEO John Sunil affirmed 2024 guidance of delivering a mid-teen uptick in revenue growth and improving EBITDA margins.
“The first-quarter adjusted EBITDA grew by 7.7 per cent (to Dh260 million), reflecting ongoing investments in complex care to unlock additional higher yield inpatient footfall. Adjusted net profit was up by 16.3 per cent, driven by robust revenue growth, increased operational efficiencies, and lower finance costs.”
The net profit, excluding one-off items and taxes, rose by 16.3 per cent to Dh141 million. The group, however, reported a 14 per cent decline in net profit — including one-off items and taxes — to Dh104 million compared to the same period last year at Dh121 million.
The bed occupancy at hospitals rose to 64 per cent in the first quarter. Its outpatient volume increased marginally by 1.6 per cent. The quarterly results were supported by the continued ramp-up of growth assets and strong demand for super-specialty services.
Major plans for Saudi
By May, Burjeel launched 13 new PhysioTherabia health and wellness centres in Saudi Arabia in partnership with Leejam Sports Company – the largest provider of health and fitness services in the Mena region.
The recent openings bring the total number of PhysioTherabia facilities to 17, staying on track to hit the 60-mark in Saudi Arabia by the end of next year. It also expanded insurance partnerships with leading providers like Tawuniya and Al Arabia Takaful.
Sunil noted that expanding the footprint of PhysioTherabia centres in Saudi Arabia is a high-potential growth area.
“We have rolled out 17 of the 30 centres due to be operational this year, putting us well ahead of schedule. PhysioTherabia has gained access to a broader clientele through strategic partnerships with leading insurance providers, accelerating the Kingdom’s penetration and solidifying its position as a key player in the sector,” Sunil said.
The CEO also revealed plans to introduce value-based products in Saudi Arabia and additional advanced healthcare service lines in the UAE.
Positive outlook
Burjeel maintains a positive outlook for its mid- and long-term growth thanks to the favourable macro tailwinds in the UAE and Saudi Arabia, with strong predicted mid-term GDP growth, rapid population growth, and increasing demand for added healthcare capacity.
The group’s revenue is expected to grow in the mid-teens led by BMC at more than 30 per cent.