ABU DHABI, 4th August, 2023 (WAM) — Burjeel Holdings, a prominent Healthcare Services Provider based in the UAE and MENA region, listed on the Abu Dhabi Securities Exchange (ADX), has unveiled its impressive financial performance for the first half of 2023, ending on June 30th. The company reported a remarkable 47% increase in net profit during this period, showcasing the success of its growth strategy and commitment to delivering quality healthcare services.
According to the financial report adhering to the International Financial Reporting Standards (IFRS), Burjeel Holdings achieved a total revenue of AED 2.2 billion in H1 2023, marking a substantial growth of 13.9% year-on-year (YoY). This surge in revenue was attributed to a surge in inpatient footfall and an expansion in patient yield. The growth momentum accelerated further in Q2 2023, with a revenue increase of 16.3% YoY, amounting to AED 1.1 billion.
The standout highlight of Burjeel Holdings’ financial performance is the staggering increase in net profit. The company reported a net profit of AED 225 million in H1 2023, showcasing a remarkable 47% YoY growth. This impressive achievement can be attributed to the company’s dedication to top-line growth, coupled with a significant reduction in finance costs. Q2 2023 witnessed an even more remarkable surge in net profit, rising by 51.4% YoY to AED 103 million.
Burjeel Holdings remains steadfast in its growth strategy, which revolves around increasing patient utilization and yield, while concurrently pursuing expansion opportunities across the MENA region. This approach was recently validated by the company’s agreement to manage the Al Dhannah Hospital, the largest healthcare facility of the Abu Dhabi National Oil Company (ADNOC) in the Al Dhafra region. This collaboration not only aligns with Burjeel’s capex-lite expansion approach but also opens doors to broader opportunities within the company’s network, including the Burjeel Medical City.
The company’s expansion endeavors extend beyond UAE borders, as evidenced by its partnership with KSA-listed Leejam Sports Company JSC to establish PhysioTherabia clinics in Saudi Arabia. The joint-venture network, specializing in sports medicine and rehabilitation, aims to open over 60 clinics in the next two years, tapping into Leejam’s established fitness centers and loyal member base.
John Sunil, Chief Executive Officer of Burjeel Holdings, expressed his satisfaction with the company’s performance, stating, “Burjeel Holdings has performed remarkably well in the first half of 2023, achieving robust top-line and bottom-line growth while making significant strides in operational and strategic advancements.” He further elaborated on the company’s strategic moves, its expansion plans, and its ongoing commitment to delivering high-quality healthcare services.
Burjeel Holdings’ EBITDA (earnings before interest, taxes, depreciation, and amortization) witnessed a solid 12.7% YoY increase, amounting to AED 467 million in H1 2023. The company maintained a consistent EBITDA margin of 21.6%, reflecting its financial stability and efficient management.
As part of its continuous growth strategy, Burjeel Holdings aims to increase the proportion of high-yielding complex care and surgeries within its service portfolio. This strategic approach is expected to positively impact the company’s top-line growth and medium-term margin expansion. Burjeel is actively diversifying its range of complex surgeries performed, showcasing its commitment to delivering advanced medical care.
In an optimistic move, Burjeel Holdings confirmed its intention to pay its first interim dividend, a distribution of approximately AED 95 million to its shareholders in August 2023. This decision reflects the company’s strong financial performance and its dedication to creating value for its stakeholders.
As a premier healthcare service provider in the MENA region, Burjeel Holdings’ impressive H1 2023 performance stands as a testament to its commitment to excellence and strategic growth. With a robust expansion strategy and a focus on delivering transformative medical care, the company is poised to continue its upward trajectory in the healthcare industry.
