Ramsay Healthcare Limited- FY16 Result

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Ramsay Healthcare Limited (ASX: RHC), operating in 6 countries with a network of close to 225 hospitals and ranked among the top 5 private hospital operators in the world, announced full year FY16 results ending June 30th 2016.

Group revenue surged to $8.7 billion from $7.35 billion, an increase of 18.1 percent from the previous year while the EBIT was up 11.6 percent to $897.1 million during the same period. Core NPAT was at $481.4 million, a robust increase of 16.8 percent from the previous year.

The Managing Director of Ramsay Health Care Christopher Rex said the Company delivered outstanding results as all verticals performed at or above expectations. He attributed the strong financial performance to excellent growth in volumes, ongoing efficiencies, strategic acquisitions and additional investment in the existing facilities.

Key highlights-

  • EBITDA rose by a solid 14.7 percent to $1.27 billion from $1.1 billion in 2015
  • Core EPS derived from Core NP increased to 231.4 cents from 196.6 cents
  • Completed integration of Ramsay Sante and Generale de Sante
  • Completed capacity expansions leading to an increase of 500 beds and 26 operating theatres
  • Announced a final dividend of 72 cents with the full year dividend at 119 cents, fully

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Outlook-

According to Rex, the company has a robust balance sheet and strong cash flow generation which gives the flexibility to fund increasing demand for to expand brownfield capacity, acquisitions in the futures and ongoing working capital requirements. He considers all regions to be experiencing ageing and growing populations and with the emergence of medical innovation and therapies to check proliferation of chronic diseases, he expects the demand for healthcare to rise considerably.

The company is expecting core NPAT to increase by 10 percent and core EPS to surge by 12 percent in FY17, a modest increase compared to FY16.

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