Abu Dhabi: UAE’s NMC Health 2012 net profit climbs on higher revenues

Media Release

* NMC net profit $59.8 mln vs $43.8 mln - CFO
* EPS up 34 cents vs 33 cents in 2011
* Profit driven by core business and lower fin costs - CFO

Abu Dhabi, 27 Feb 2013 (Reuters): UAE healthcare provider NMC Health on Tuesday reported a 36.5-percent jump in 2012 net profit due to higher core business revenues and reduced funding costs.

 

The company, which floated on the London Stock Exchange last year, made a net profit of $59.8 million in 2012 compared to $43.8 million in the previous year.

 

Earnings per share (EPS) edged up to 34 cents in 2012 from 33 cents in 2011.

 

"The main driver was our EBITDA (earnings before interest, tax, depreciation and amortisation) that went up on performance of our healthcare business as well as lower finance costs," Prasanth Manghat, NMC’s chief financial officer, told Reuters by phone on Tuesday.

 

"Finance costs were down by 17 percent due to cost-effective funding that we got," he said without elaborating.

 

NMC earned revenues of $490.1 million in 2012, up 10.5 percent on the prior-year while adjusted EBITDA rose 12.9 percent to $79.6 million, a company statement said.

 

The company has proposed its first annual dividend of 4.1 pence per share amounting to 20 percent of profit after tax for 2012.

 

Revenue in the Healthcare division for the year increased 15 percent to $251.6 million in 2012 from $218.7 million.

 

"Our full year results show that we have made strong progress across our existing facilities during 2012," B R Shetty, CEO of NMC, said in the statement.

 

"2013 will again be a year of transformation as we expect to open three of the four capital projects which we committed to as part of our initial public offering, and which will help drive our future growth," he said.

 

At the time of its IPO, NMC announced plans to undertake four key projects at a total capital cost of $315 million within its healthcare division.

 

Abu Dhabi-based NMC, one of the largest private sector healthcare providers in the United Arab Emirates, operates general and specialised hospitals, pharmacies and medical centres.