Raffles Medical Group profits down 15.8% to $13.64m in Q3

Gestation losses from Raffles Hospital Chongqing dragged down profits.

Raffles Medical Group's net profit after tax fell 15.8% YoY to $13.64m in Q3, the company announced. Its revenue rose 7.8% to $130.5m over the same period, with that of the healthcare services division and hospital services division climbing 9.5% and 7.0% respectively.

The Group’s earnings before interest, depreciation and amortisation (EBITDA) grew 1.4% to $24.3m in the same quarter.

The decline in profits was attributed to gestation losses by Raffles Hospital Chongqing. Excluding it, the group's net profit would have grown 4.8%.

In contrast, the revenue growth from Healthcare Services division came from securing more insurance contracts and corporate clients, whilst the Hospital Services division saw an increase in patient load.

OCBC Investment Research's outlook for the group in the near term is subdued. "Whilst we see growth potential from its expansion plans in China over the medium term, near term catalysts appear limited given gestation time required for ramping up its new facilities in China," its research team wrote.