|22 August, 2019

UAE-based NMC Health posts 32.6% jump in H1 revenue

Strong performance for H1 2019 in core markets of UAE and on track for broader GCC expansion

NMC Health, a leading GCC and international private healthcare operator, has posted revenues of $1,236 million for the first half (H1) of the year as against $932 million during H1 2018, marking a growth of 32.6 per cent.

NMC’s management has consistently guided that a verticals-based strategy is the best means of capitalizing on the healthcare markets in the UAE, as well as the wider GCC. This approach reflects the unique nature of the respective populations, which are more modest in size yet have demographic and economic characteristics that are favourable for continued demand for high quality healthcare access.

Building on the steps taken on this front in past years, NMC has continued to enhance its vertical framework. This approach, combined with strong off-take from the end market, has ensured NMC has continued to deliver a market leading performance.

Notwithstanding the volatility of asset prices, as reflected by the stock market, the healthcare market remains highly predictable. NMC’s track record of guidance and delivery now extends to six years, with management confident that 2019 will prove to be no different.

NMC served a total of c. 4 million patients (+16.7 per cent YoY) in H1 2019 with 1,922 (H1 2018: 1,530) operational beds. Given the sustained addition of new capacity, 31 per cent of the operational beds are in early ramp-up phase, translating into an occupancy rate of 67.7 per cent (down 220bps YoY).

Outlook

Continued successful execution of the Group’s strategy has remained integral to management’s ability to sustainably guide and then deliver on strong growth, year after year. Based on the performance of the Group in H1 2019 and the continued off-take in the end market in Q3 2019, management reiterates the guidance provided on 28 May 2019.

Given the Company’s strong operational and financial performance and continued trend of performing in line with expectations, management remains highly confident in relation to future performance. Looking ahead, the Board intends to continue its successful growth strategy, which it believes will continue to create significant value for shareholders over the long-term.

Prasanth Manghat, chief executive officer, commented: “NMC Health again achieved strong performance in the first six months of the year, as we continue to deliver on our growth strategy in our attractive target markets. Our ability to perform strongly in a challenging environment testament to NMC’s strategy of developing niche, differentiated verticals in our core markets that provide the best possible care for our patients.”

“All key financial and operational metrics of our healthcare and distribution businesses performed in line with our guidance. We also made good progress on increasing free cashflow during the period and we see room for further improvement in H2 2019, as has been the trend in previous years.

“We are also particularly pleased to have closed our strategically important partnership with GOSI/Hassana Investment Company which ranks as one of the defining events in the history of NMC. This partnership will provide us with the ideal platform to establish a dominant position in the attractive Saudi Arabia healthcare market.

“2019 remains focused on integration and realization of synergies from previous acquisitions. The Board remains committed to continuously improving transparency and enhancing the Group’s governance and ESG framework. The establishment of a new committee to oversee all related party activities in addition to the current robust program is a good example in this regard,” Manghat concluded. – TradeArabia News Service

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