ABU DHABI, 31st October, 2023 (WAM) — Burjeel Holdings today announced its financial results for the nine months ended 30th September 2023, reporting that net profit for the nine months of 2023 rose 76.4% to AED362 million, enabled by revenue growth, increased operational efficiencies and lower finance costs.
In a statement on Tuesday, Burjeel said that net profit increased by 162.6% to AED137 million during the third quarter of 2023.
The company delivered robust revenue growth of 17.2% to AED3.3 billion for the first nine months of 2023, driven by a 10.6% increase in total patient footfall to 4.4 million patients.
EBITDA for the nine months of 2023 increased by 19.5% to AED727 million, with EBITDA margin expanding to 21.9%, as the Group focused on providing higher-yielding services.
Burjeel Holdings continues to deliver on its strategic priorities of driving growth by elevating patient yield and utilisation, capitalising on the Group’s world-class healthcare assets and infrastructure. Burjeel also continues to expand its network of medical centres, which serve as a key referral source for its speciality hospitals. The Group plans to launch two medical centres in Dubai and Abu Dhabi and one Burjeel Day Surgery Centre in Al Dhafra over the next six months.
John Sunil, Chief Executive Officer of Burjeel Holdings, said, “Burjeel Holdings delivered another strong set of results during the third quarter of 2023, as we focused on executing our strategy to drive patient yields through the provision of highly specialised complex care delivered by world-class medical professionals as we further ramped up our growth assets.
“This enabled us to accelerate our growth trajectory with Group revenue increasing 23.8% and EBITDA growing by an impressive 34.1% in the third quarter of 2023, driven by both an increase in patient footfall and the expansion of our complex care offering.
Cash Flow from Operating Activities increased by 64.0% during the nine months of 2023, driven by EBITDA growth and optimisation of working capital. Additionally, Free Cash Flow (FCF) Conversion1 grew to 45%, up from 35% in the prior year.
The Group’s Net Debt / Pre-IFRS 16 EBITDA decreased from 1.5x as of 31st December 2022 to 1.3x as of 30 September 2023. The strength of the group’s balance sheet provides adequate financial flexibility to pursue growth opportunities going forward.
The Group’s share capital was AED521 million as of 30th September 2023.
Burjeel is keen to deliver value to its stakeholders, proven by the payment of interim cash dividends with an expected future pay-out ratio of 40% to 70% of net profit, contingent on investment requirements for additional growth plans.
For the first half of 2023, the Group paid AED95 million or nearly AED0.02 per ordinary share as its debut interim dividend. This represents 42% of net profit for the first half of 2023.