Raffles Medical Group (RMG) has recorded revenue of $751.6 million and patmi of $62.2 million for FY2024 ended Dec 31, 2024.
Compared to FY2023, the group’s revenue increased by 6.3% and registered a lower patmi of 31.0%, partially attributed to lower government grants and the absence of the fair value gain of investment properties in FY2024.
This year, RMG will pay a final dividend of 2.5 cents per ordinary share. Given its strong positive operating cash flow, the group has revised its dividend policy to pay out at least 50% of its sustainable earnings annually.
Additionally, RMG intends to buy back up to 100 million ordinary shares over the next two years.
The patmi for 2HFY2024 improved by 4.3% to $31.6 million compared to $30.3 million in 2HFY2023. Excluding fair value gain of investment properties, patmi for 2HFY2024 of $31.6 million showed an increase of 38.0% from the adjusted patmi of $22.9 million in 2HFY2023.
For FY2024, the group’s hospital services division performed well and generated a revenue of $345.7 million, which represents an increase of 4.6% y-o-y. The division saw an increase in profits by 9.5% to $35.7 million.
See also: Raffles Medical Group reports FY2023 patmi of $90.2 million, 37.1% lower y-o-y
Its healthcare services division registered a revenue growth of 4.1% from $283.4 million to $295.1 million.
However, it experienced a decline in profitability due to fewer government grants and the cessation of Covid-19 services in 2024 compared to 2023.
RMG says its three general hospitals in Beijing, Shanghai and Chongqing have demonstrated “strong potential for growth” and a “positive” outlook ahead.
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The group’s regional revenue grew by 10.1% to $65.3 million, from $59.3 million in FY2023, as the Raffles Hospital brand gained “greater recognition” in China.
Raffles Health Insurance (RHI) grew by 23.2% in revenue from $144.4 million for FY2023 to $178.0 million for FY2024.
“The healthcare insurance industry is experiencing a higher loss ratio due to medical inflation. Through more diligent claims adjudication and careful management of expenses, RHl's loss showed a 10.4% improvement compared to FY2023,” says RMG.
The group’s balance sheet remained strong with $343.7 million in cash and cash equivalents as of end-2024, says RMG.
Based on the current conditions and barring unforeseen circumstances, RMG’s directors are optimistic that the group will remain profitable in FY2025.
“As Raffles Medical Group continues to grow and expand, we are focused on achieving sustainable growth by strategically enhancing value and optimising the operational leverage of our existing businesses,” says Dr Loo Choon Yong, executive chairman of RMG.
Shares in Raffles Medical closed 0.5 cents lower, or 0.6% down, at 82.5 cents on Feb 21.
