NMC says 7-month earnings of $120m beat estimates

NMC Healthcare group, which has been tackling a severe debt-ridden crisis since early 2020, reported on Monday revenues exceeding expectations of $710 million for the first seven months of 2021.

In a statement, the beleaguered group said revenues during the seven-month period were driven by strong performance in the core business verticals. Gross revenues for the period were nine per cent ahead of business plan and up 16 per cent on the corresponding period in 2020 and three per cent on 2019.

“Coupled with the ongoing positive impact of an operational performance improvement program this has delivered Ebitda (earnings before interest, tax, depreciation and amortisation) of $120 million year to date to July 2021.

Ebitda for the period is 44 per cent ahead of business plan, 91 per cent up on 2020 and 15 per cent up on 2019, said the scandal-marred group which has been under court-appointed administrators since its founder BR Shetty and some senior officials left the private healthcare giant in the lurch amid debts totalling billions of dollars.

In a statement, the company said the guidance for the full year has not changed from that issued last month, as the financial results will be in line with the Ebitda as forecast in the business plan. “Revenues for the multi-specialty hospitals, clinics and medical centers were ahead of expectations, driven by additional clinical services lines and a greater number of patient encounters. The long-term Care business benefitted from additional capacity in Dubai and Abu Dhabi and has worked closely with the government hospitals in all emirates to assist in the care of long-term patients, releasing beds for more acute patients being treated in the public hospitals. There were exceptionally strong results in the aesthetic clinics, which benefited as customers facing limited summer travel options have stayed in the UAE,” it said.

The joint administrators said in their statement that the Fakih IVF business had a strong start to the first half of the year, trading well ahead of the business plan. “July and August 2021 have seen a softening of results due to turnover of some physicians to competing IVF businesses. Specific actions to retain the team and increased new recruitment are underway which should enable the Fakih IVF business results to keep to the level detailed in the Business Plan over the Plan period.”

Michael Davis, chief executive officer, NMC Healthcare, said the performance so far this year are a positive reflection of the root-and-branch process of performance improvement implemented over the past 12 months and the stability created through our overall restructuring process. “Our results year to date are indicative of how our business is rebounding faster than the overall economy, led by the company’s accelerated transformation programme.”

“We are confident that as the UAE emerges from the shadow of the Covid pandemic, NMC 2.0 will stand tall as a beacon of health and well-being for the benefit of the communities we serve,” said Davis.

— issacjohn@khaleejtimes.com