Private healthcare provider Raffles Medical Group posted a 4.3 per cent rise in net profit to S$31.6 million for its second half ended Dec 31, 2024, from S$30.3 million in the previous corresponding period. 

Raffles Medical shares jumped 5.5% in morning trading.

This translates to an earnings per share (EPS) of S$0.017 against an EPS of S$0.0163 previously. 

Revenue for H2 climbed 14.8 per cent to S$385.9 million from S$336.2 million in the year-ago period, the group said in a Monday (Feb 24) bourse filing.

The board has proposed a final dividend of S$0.025 per ordinary share, up slightly from S$0.024 the year before. Once approved by shareholders at its Apr 25 annual general meeting, the dividend will be paid on May 23, after books closure on May 15. 

For the full year, net profit was down 31 per cent year on year at S$62.2 million from S$90.2 million, translating to an EPS of S$0.0335 against S$0.0485 previously.  

Revenue for the full year was up 6.3 per cent at S$751.6 million from S$706.9 million. 

Stronger revenue for financial year 2024 came as the group’s hospital services division performed well for the year, the company said. 

The division registered revenue growth of 4.6 per cent on the year to S$345.7 million, and a 9.5 per cent increase in profit to S$35.7 million. 

Its healthcare services division logged revenue growth of 4.1 per cent from S$283.4 million to S$295.1 million. However, its profitability declined due to fewer government grants, and the cessation of Covid-19 services in 2024 compared with 2023. 

Outlook

Looking ahead, Raffles Medical is “optimistic” that it will stay profitable in FY2025 based on current conditions and barring unforeseen circumstances.

Rising costs threaten to compromise Singapore’s appeal as a regional healthcare hub, but the company intends to mediate this by pursuing long-term growth opportunities in other markets, it said in a media statement.  

“Although the strong Singapore dollar, coupled with higher healthcare services costs, has made Singapore a less attractive medical hub in the region, the group remains focused on exploring new markets and meeting the growing demand of an increased pool of patients seeking personalised healthcare and wellness services,” said Raffles Medical.

The company has revised its dividend policy to pay out at least 50 per cent of its sustainable earnings annually, and it intends to buy back up to 100 million ordinary shares over the next two years. 

Shares of Raffles Medical closed on Friday 0.6 per cent or S$0.005 lower at S$0.825.