Raffles Medical Group's full-year profit up 1.3% to $70.2m

Thanks to healthcare services' 30.8% revenue growth.

Leading integrated healthcare organisation Raffles Medical Group achieved a record revenue of $473.6m for the year ended 2016, a 15.4% growth from 2015.

All divisions contributed positively to the growth of the Group with revenue from Healthcare Services growing an impressive 30.8% and Hospital Services increasing by 6.3%. The strong revenue growth was driven by higher patient load from the expanding RafflesMedical clinic network, higher revenue contributed by more specialists as well as full year contributions from International SOS (MC Holdings) Pte Ltd and its subsidiaries (MCH). Excluding the revenue contribution from MCH, the Group’s revenue would have grown by 7.5%.

The Group registered a Profit After Tax and Minority Interests of $70.2m, an increase of 1.3% from $69.3m in 2015. The strong revenue performance was offset by greater staff costs, operating expenses and consumables. The increase in staff costs was due to manpower recruitment to cater for expanded business operations and the new medical centre in Raffles Holland V. On a comparable basis, excluding the results of MCH, the Group’s operating profit would have grown by 4.4% instead of 1.7%.

The strong performance of the Group translated into a strong cash flow from operating activities of $78.9m. The Group has a healthy cash position of $111.9m as at 31 December 2016. The strong operating cash flows will enable the Group to support its investments in MCH, RafflesHospital Shanghai and RafflesHospital Extension. These investments amounted to $45.6m in 2015.