UAE Healthcare Firm NMC First-Half Net Profit Up 17%

NMC Health, the United Arab Emirates healthcare provider posted a 17.4 per cent rise in first-half net profit helped by higher occupancy levels, its chief financial officer said on Tuesday.

NMC, which floated on the London market in April last year, made a net profit of $32.3 million in the first six months of this year compared to $27.5 million in the year-ago period.

“The number of patient flows and higher occupancy levels at our hospitals helped our business,” Prasanth Manghat told Reuters by telephone.

The inflow of patients crossed the one million mark in the first six months and is expected to exceed two million by the end of this year, he said.

“We are bullish on the UAE healthcare market, which is growing, coupled with strong sentiments at the macro level,” he said.

Revenues in the healthcare division grew by 17.3 per cent to $143.2 million from $122.1 million a year earlier, NMC said in a statement.

The healthcare division’s earnings before interest, taxes, depreciation and amortisation (EBITDA) was $40 million, up 20.2 per cent.

Revenues in its distribution division grew 11.9 per cent to $147.1 million.

NMC, which plans capital expenditure of $120 million this year, spent around $29 million in the first half on new capital projects with the remainder to be invested before the year-end on healthcare projects, Manghat said.

A new medical centre is due to open later this year in the UAE and two hospitals are set for opening in the first half of 2014.

Abu Dhabi-based NMC, founded by billionaire Indian entrepreneur B.R. Shetty, is one of the largest private sector healthcare providers in the UAE and operates general and specialised hospitals, pharmacies and medical centres.