NMC Health’s income surges 21% on robust revenues in H1

ABU DHABI — Abu Dhabi’s leading healthcare provider, NMC Health, said it’s earning surged 20.6 per cent year-on-year to $27.5 million in the first half of the year on robust revenues.

By Haseeb Haider

Published: Thu 30 Aug 2012, 10:38 PM

Last updated: Tue 7 Apr 2015, 2:35 PM

“The earnings are in line with market expectations,” Prasanth Manghat, the chief financial officer told Khaleej Times.

Abu Dhabi-based healthcare provider grabbed headlines when it got listed on the London Stock Exchange on April 5, by offering 55.7 million new shares to raise $186.2 million in an IPO.

The firm, founded in 1975 by Dr B.R.Shetty, who ranked number 2 — in the list of rich expatriates — in the country, as a small family-owned business in a rented apartment currently operates four hospitals, one day-care medical centre and eight pharmacies.

The firm which is part of FTSE-250 Index, distributes over 65,000 products across the Pharmaceutical, FMCG, Food, Medical and Veterinary sectors, making it nation’s single largest distributor. The total revenues rose 8.4 per cent to $238 million contributed by 13.4 per cent rise in the core healthcare segment which generated $122.1 million in the period.

However, the revenues from distribution business increased only 3.9 per cent year-on-year to $131.5 million.

Dr. B.R.Shetty, the chief executive officer told Khaleej Times, that the present 230 bed capacity of his healthcare network would be more than doubled to 530 beds by the end of 2014, with a capex of $325 million.

In the first six months, NMC Health reported 15.6 per cent year on-year surge in inpatients numbers to 17,289, with occupancy reaching 60.3 per cent up against 51.6 per cent in the same period last year.

However, the number of outpatients grew 8.4 per cent to 638,118, in the period ended June 30, 2012.

NMC Health, raised $150 million in a syndicate loan early this year, which together with the $186.2 million proceeds raised from the IPO are being spent on new projects to be completed in the next three years.

However, in the first half of the year $37.1 million were spent out of that amount, the chief financial officer said.Abu Dhabi’s first private maternity hospital Brightpoint will be completed in December 2012.

The $70 million facility, according to Dr Shetty would have 50 beds, which will be doubled later. A day patient medical facility is being built in Mussafah with a capital expenditure of $15 million. To be opened in December, this facility will refer patients to NMC’s speciality hospitals.

The Dubai Investment Park medical facility, which will cost $25 million, the chief executive said was expected to be opened in first half the next year.

NMC Health’s biggest project Khalifa City facility will go to tender stage in the coming months with capital expenditures amounting to $200 million.

During the period, the chief executive said $9 million were invested to acquire BR Medical Suites in Dubai.

The Dubai Investment Park warehouse facility, which will facilitate the Distribution business was now open, he said.

The chief executive officer, said: “Our expansion plans are progressing well and we are excited about our new facilities.”

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