Raffles Medical H1 profit rises 4.8% to S$32.1 million

[SINGAPORE] Raffles Medical Group on Monday (Jul 28) posted a net profit of S$32.1 million for its first half ended Jun 30, up 4.8 per cent from S$30.6 million in the same period a year prior.

This comes on the back of the healthcare group cementing partnerships with Shanghai’s Renji Hospital in March and Chongqing’s First Affiliated Hospital in June, to build a new model for medical cooperation between Singapore and China.

In the China market, revenue therefore increased marginally to 163.6 million yuan (S$29.3 million) in H1 FY2025 from 162.9 million yuan in H1 FY2024. The Raffles Hospital brand has gained wider recognition among patients in China, reinforcing its position as a trusted healthcare provider, said the company.

Revenue increased 3.5 per cent year on year to S$378.4 million in H1 FY2025, from S$365.7 million in H1 FY2024.

Its healthcare services division reported a 0.6 per cent rise in revenue to S$142.2 million and a profit of S$24.9 million, while the group’s hospital services division registered revenue of S$174 million and profit of S$17.7 million.

Revenue of Raffles Health Insurance grew 10 per cent to S$94.9 million and incurred an operating loss of S$3.1 million, a decline of 51.7 per cent from S$6.4 million in the year prior, in light of more rigorous claims adjudication and prudent expense management. 

Earnings per share for the period stood at S$0.0173, up from S$0.0165 in the previous corresponding period.

No interim dividend was declared by the mainboard-listed group.

Operating cash flow generated by the group stood at S$56.6 million in H1 FY2025.

Dividends totalling S$46.3 million were distributed, following the company’s annual general meeting in April. The healthcare group revised its dividend policy in February to distribute at least 50 per cent of sustainable earnings annually and buy back up to 100 million ordinary shares over the next two years.  

Cash and cash equivalents stood at S$334.2 million as at Jun 30, an increase from S$316.3 million in the same year-ago period.

Based on current conditions and barring unforeseen circumstances, the board expects the medical group to remain profitable in FY2025.

Dr Loo Choon Yong, executive chairman of Raffles Medical, said: “We are constantly innovating to stay relevant and provide the best care to meet our patients’ evolving health needs. We are well-positioned to extend the Raffles brand of care to more people both locally and across the region, through strategic partnerships and collaboration with leading healthcare experts.”

The group noted that the healthcare sector remains underpinned by stable demand and structural growth drivers, amid volatility in financial markets and interest rate uncertainties which may weigh on investor sentiment. Therefore, it continues to prioritise adapting to emerging health trends to stay resilient and relevant in a rapidly evolving healthcare landscape, amid Singapore’s rising life expectancy and population ages.

“During such challenging times, we remain focused on improving margins by optimising resource utilisation, streamlining care delivery processes, and driving speciality-driven services across our facilities,” the healthcare company wrote in its Monday statement.

The healthcare player is the operator of HSBC’s new health and wellness centre, which opened on Monday and is within its wealth centre at The Star Vista. This emerges from a longstanding patnership between Raffles Medical and HSBC Life Singapore, as the group helps to deliver medical underwriting and wellness services to the bank’s customers for over a decade.

The venture will provide customers of HSBC Life Singapore with additional benefits including cashless arrangements for outpatient care, 24/7 concierge and emergency care coordination, telemedicine services, discounted health screening packages and early detection initiatives.

Shares of Raffles Medical ended Friday 1.9 per cent or S$0.02 higher at S$1.05.