#Ramsay Health Care’s full year earnings looking healthy
AUSTRALIA’S largest private hospital operator, Ramsay Health Care, has upgraded its full-year net profit guidance on the back of a strong lift in interim profit.
In the six months to December 31, Ramsay posted a net profit of $157.76 million, a 13.9 per cent increase on the $138.44 million recorded in the first half of the previous year.
In the same period revenue was $2.361 billion, a 13.9 per cent increase on the $2.073 billion recorded in the previous corresponding period.
Based on the strength of the first-half results, and given the strong industry fundamentals, Ramsay upgraded its full-year guidance for core net profit after tax (NPAT) and core earnings per share (EPS) growth to range between 16 per cent to 18 per cent, from a previous range of between 12 per cent and 14 per cent.
Ramsay will pay a fully franked interim dividend of 34c on March 26 to shareholders on the register at March 10.
In the previous corresponding period, Ramsay paid a fully-franked interim dividend of 29c.
Ramsay Health Care managing director Christopher Rex said the group’s result was driven by a solid operating performance in all business units across the world and buoyed by strong market fundamentals.
“Our business is performing well thanks to strong demand for our high quality facilities and services, effective management and our successful approach to capacity expansions,” he said.
“Newly completed projects are already contributing to earnings and we are continuing to receive upside from projects completed in prior years.”
Mr Rex said the Ramsay board had leveraged off the quality and depth of the group’s hospital portfolio in Australia with the approval of a further $70 million in capacity expansions at its Australian facilities during the six months.
“Strategically, the six months has been successful in terms of executing our global expansion strategy,” he said.
Looking forward, Ramsay said it would draw on its extensive experience in hospital operations to continue to concentrate on improving performance at its existing hospitals and enhancing its newly acquired hospitals.
Source: The Australian