Raffles Medical Group's net profit jumps 4% to $16.2m

Thanks to higher healthcare service revenues.

Raffles Medical Group has had a healthy and sound quarter in 3Q16 as it posted a 4% increase in net profit to $16.2m.

In an announcement filed on the Singapore Exchange, the group said this is on back of stronger contributions from all of its segments.

During the past quarter, revenue from its healthcare services grew by 39.7%, while that of its hospital services spike up by 6%.

"Revenue growth was driven by higher patient load from expanding Raffles Medical clinic network, more specialist consultants as well as the newly acquired International SOS (MC Holdings) Pte Ltd and its subsidiaries (MCH)," the group stated.

However, the strong revenue performance was offset by higher staff cost and inventories.

The increase in staff cost was due to staff recruitment to cater the expanding business operations and the new medical centre in Raffles Holland V.

Without this, operating profit growth would have grown 4.5% instead of the measly 0.3%.