Raffles Med unveils robust Q2 results as profits surge to $15.6m

Healthcare revenue jumps amid higher patient loads.

It has been a healthy second quarter for Raffles Medical Group, as the company reported an 8.5% year on year increase in its Q2 profits today.

RMG’s profits jumped to S$15.6m, as its revenue grew 6.6% growth in revenue to S$92.6m. This happened on the back of clinic expansions and higher patient loads.

Revenue growth was driven by a 14.7% revenue jump for its Healthcare division, while its Hospital Services division grew at a slower pace of 4.9%.

According to RMG, “Strong cash flows were generated from the Group’s business operations, that contributed to the Group’s sturdy cash position of S$130.6 million as at 30 June 2014 after accounting for the Group’s final dividend distribution for the financial year ended 31 December 2013 of S$4.0 million and investment of S$190.4 million in capital expenditure as well as land purchases for Raffles Hospital Extension and Holland Village projects in the first half of 2014.”

Here’s more from RMG:

The Group achieved revenue growth of 6.6% from S$86.8 million in Q2 2013 to S$92.6 million in Q2 2014. Revenue from Healthcare and Hospital Services segment grew by 14.7% and 4.9% respectively.

Revenue from investment holding was comparatively lower in Q2 2014. This was due to the Q2 2013 disposal of a subsidiary which held the property at 30 Bideford Road.

The Group’s Q2 2014 revenue increase was due to higher patient load as the RafflesMedical clinic network continues to expand. Other contributory factors include the securing of new corporate contracts both locally and overseas and the addition of more Specialist Consultants to the Group.

The Group’s healthcare insurance services also generated higher sales in the second quarter. The Group’s performance improved in this quarter. The Group’s operating profits increased by 6.3% from S$17.6 million in Q2 2013 to S$18.7 million in Q2 2014 and its net profit after tax grew 8.1% from S$14.5 million in Q2 2013 to S$15.7 million in Q2 2014.