Burjeel Holdings’ Q1 2023 profit surges 43.4% to Dhs121.3m

The healthcare services provider said its revenues surged by 11.6 per cent year-on-year to Dhs1.1bn in the first quarter of 2023

by Kudakwashe Muzoriwa

May 9, 2023

Abu Dhabi-based hospital operator Burjeel Holdings has reported a 43.4 per cent increase in first-quarter net profit to $33m (Dhs121.3m), driven by higher revenues, increased operational efficiencies and lower finance costs linked to ongoing debt reduction.

The healthcare services provider said its revenues surged by 11.6 per cent year-on-year (YoY) to Dhs1.1bn in the first quarter of 2023, thanks to the improved performance of Burjeel Medical City (BMC) and the medical centres’ segments.

“Revenue in the hospital and the medical centres’ segments increased by 10.9 per cent and 24.8 per cent, respectively. The group’s flagship hospital, BMC, continued to witness strong growth in inpatient and outpatient footfall driving its revenue growth of 32.6 per cent.

Burjeel’s earnings before interests, taxes, depreciation and amortisation (EBITDA) reached Dhs241.6m in the first three months of the year, up 13.4 per cent YoY with a margin of 22.3 per cent despite rising manpower costs.

The group said EBITDA in the hospitals segment jumped 21.7 per cent to Dhs215.7m in Q1 2023 with a margin of more than 22.5 per cent from 20.5 per cent in Q1 2022 while EBITDA in the medical centres segment rose by a record 43.5 per cent to Dhs30.4m.

Burjeel reduced its debt further by Dhs29.1m during the quarter and the group net debt stood at Dhs1.06bn as of March 31, 2023.

“Following our impressive start to the year, we remain positive on the outlook for Burjeel Holdings given our differentiated business model, world-class facilities, and strategy to increase asset utilization and patient yield,” said John Sunil, CEO of Burjeel.

Burjeel’s investment strategy

Meanwhile, Burjeel continues to invest in capabilities that enable the healthcare provider to deliver more complex procedures in the future while differentiating the group from its regional competitors.

The group is growing its regional footprint in Saudi Arabia through a joint venture with Leejam Sports Company. The venture will see Burjeel Holdings and Leejam set up a network of more than 60 physiotherapy, rehabilitation and wellness centres in Leejam clubs across Saudi Arabia. The JV is supported by the kingdom’s sports ministry.

The company also said that it is on track to add more than 120 new inpatient beds and five new medical centres across UAE.

“We continue to review partnership opportunities in the Middle East and Africa region and we are actively evaluating various CAPEX-lite opportunities for geographic expansion, further enhancing our growth prospects,” said Sunil.

Founded in 2007 and owned by VPS Healthcare, Burjeel is one of the biggest private healthcare services providers in the MENA region with a network of 61 assets including 16 hospitals, 24 medical centres as well as pharmacies and associated services.

Burjeel operates hospitals and medical centres in the UAE and Oman. With a market capitalisation of nearly Dhs12bn as of May 9, 2023, the healthcare operator debuted on the Abu Dhabi Securities Exchange in October after the company raised Dhs1.1bn.

Parent company VPS Healthcare Holdings continues to own a 70 per cent stake after the listing.