PureHealth Delivers Triple Digit Net Profit Growth to USD 134 Million with EBITDA Soaring to USD 294 Million

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May 02, 2024, 09:00 ET

PureHealth achieved a robust 52% year-on-year revenue increase to USD 1.7 billion in Q1 2024, driven by ongoing organic growth and successfully completed strategic acquisitions.
EBITDA surged by 127% year-on-year to around USD 294 million, with operational efficiencies improving across all key segments. The EBITDA margin rose to around 18% in Q1 2024 from 12% in Q1 2023.
PureHealth has a Net Cash balance of c. USD 1.2 Billion (excluding lease liabilities) on 31 March 2024, resulting in a Net Cash to EBITDA (LTM 31 March 2024) ratio of (1.45x).

ABU DHABI, UAE, May 2, 2024 /PRNewswire/ -- Pure Health Holding PJSC ("PureHealth" or "the Group") (ADX Symbol: PUREHEALTH) (ISIN: AEE01362P238), the largest integrated healthcare platform in the Middle East, today announced its financial results for the period ended March 31, 2024.

PureHealth Delivers Triple Digit Net Profit Growth to USD 134 Million with EBITDA Soaring to USD 294 Million

In Q1 2024, PureHealth achieved robust revenue growth of 52%, reaching USD 1.7 billion. Particularly noteworthy is the 85% year-on-year increase in hospital revenue, totalling USD 1.3 billion. This growth was propelled by a 10% year-on-year surge in total patient volumes, reaching 1.5 million patients, as well as a 10% rise in bed occupancy rates to 71%. Furthermore, this upward trajectory was bolstered by the consolidation of recent 100% acquisitions of Sheikh Shakhbout Medical City ("SSMC") in Abu Dhabi and Circle Health Group in the United Kingdom.

Commenting on the results the Group's Chairman, Hamad Al Hammadi, said: "PureHealth's performance is setting us on a path to joining the ranks of top-tier global healthcare providers. The dedication of our employees is the cornerstone of this success, and their efforts continue to fuel our expansion across the UAE and internationally. We are committed to maintaining this momentum and driving further advancements in pursuit of our mission to advance the science of longevity in the years to come, delivering premium healthcare services to people in the UAE and beyond."

Commentary from Shaista Asif, PureHealth's Group Chief Executive Officer, highlighted that: "Through our integrated strategy and expansion efforts, the successful acquisitions of Circle Health Group and SSMC have added over 2,000 beds across a network of more than 50 hospitals. This expansion underscores our commitment to excellence and demonstrates a clear path toward creating long-term, sustainable shareholder value. Moreover, the Sheikh Tahnoon Bin Mohammed Medical City "STMC", a large tertiary care facility with a capacity of more than 850 beds inaugurated in the latter half of 2023, is ramping up its operations in response to increased demand in the Al Ain region. STMC is set to be a vital addition to PureHealth's hospital portfolio, serving as another milestone in the Group's value-creation journey. While we are experiencing organic growth within our current business units, we will continue to actively explore opportunities for capital deployment in our pursuit of inorganic growth. This strategy aims to further enhance diversification, scale, and income growth."

PureHealth's Acquisitions in Q1 2024:

During Q1 2024, PureHealth completed the 100% acquisition of Circle Health Group, the UK's largest private hospital provider, followed thereafter by the 100% acquisition of SSMC, the UAE's largest tertiary hospital. These acquisitions are part of the Group's commitment to its vision of extending Abu Dhabi's healthcare influence globally through a series of strategic acquisitions.

Valued at USD 600 million, SSMC generated revenues of approximately USD 600 million in 2023 and has an overall capacity of 732 beds, 46 service lines within 12 clinical departments, 490 physicians and 1,500 nurses. SSMC has been licensed by Department of Health – Abu Dhabi to provide Bone Marrow Transplant and STEM. SSMC is also recognised as a centre of excellence for stroke care.

Operating Performance:

Alongside significant achievements in the Hospitals segment, the insurance segment recorded a revenue increase of 13% year-on-year to USD 426 million in Q1 2024, driven by higher gross written premiums, reflecting the growing demand for Daman's insurance offering. The Procurement segment further supported revenue growth, with a 4% increase to USD 290 million in Q1 2024

In terms of profitability, the Group's gross profit reached approximately USD 394 million in Q1 2024, marking a 6 percentage point year-on-year increase to achieve a gross margin of around 24%. This improved profitability is attributed to several factors, including an enhanced patient mix, reduced utilisation rates across the insurance segment, and the successful execution of ongoing operational streamlining and cost optimisation initiatives.

As a result of increased operational efficiencies and organic growth, the Group's EBITDA has increased to approximately USD 294 million, a 127% increase year-on-year, with the EBITDA margin for Q1 2024 expanding to around 18% (compared to 12% in Q1 2023). Net profit for PureHealth was notably strong at approximately USD 134 million, up by around USD 74 million from Q1 2023, with a margin improvement of approximately 2.5 percentage points to 8.0%.

As of 31 March 2024, PureHealth reported total assets of approximately USD 13 billion, up from around USD 8 billion in Q1 2023, which includes a healthy total cash balance of USD 2.2 billion. The Net Cash balance stood at approximately USD 1.2 billion (excluding lease liabilities), resulting in a Net Cash to EBITDA ratio of 1.45x as of the last twelve months to 31 March 2024.

About PureHealth

By advancing the Science of Longevity, PureHealth is introducing the healthcare of the future from the United Arab Emirates to the rest of the world. PureHealth is the largest healthcare platform in the Middle East with an ecosystem that challenges lifespans and reimagines health spans. With 100+ hospitals, 300+ clinics, multiple diagnostic centres, health insurance solutions, pharmacies, health tech, procurement, investments and more, its groundbreaking innovations are at the forefront of healthcare as the company is on a mission to unlock time for humankind.

Pure Health's network comprises:

SEHA (Abu Dhabi Health Services Company) – One of the largest healthcare networks of hospitals and clinics in the UAE
Daman (The National Health Insurance Company) – The UAE's leading health insurer
The Medical Office – Overseeing Sheikh Khalifa Hospitals and healthcare facilities established under the initiatives of H.H. The President of the UAE
Rafed – The UAE's largest healthcare Group Purchasing Organisation
PureLab – Managing and operating the largest network of laboratories in the region
Abu Dhabi Stem Cells Center – Specialist healthcare centre focused on cell therapy and regenerative medicine
One Health – Sales, service support, and engineering network that provides end-to-end medical solutions to a base of over 300 healthcare service providers
The Life Corner – Abu Dhabi's first holistic pharmacy, serving the health and wellness establishment
Ardent Health Services – The fourth largest privately held acute care hospital operator in the US
Circle Health Group – The largest independent operators of hospitals in the UK
Sheikh Shakbout Medical City- Largest tertiary care hospital in the UAE