UAE healthcare firm NMC's net profit jumps 21 percent

UAE healthcare firm NMC’s net profit jumps 21 percent

H1 net profit $27.5 million; Capex rises sharply; Positive on H2 earnings, profit outlook

August 29, 2012 5:58 by Reuters

NMC Health, the United Arab Emirates healthcare provider which floated on the London market in April, posted a 21 percent rise in first-half net profit on higher revenues from its core business.

NMC made a net profit of $27.5 million in the first six months, chief financial officer Prasanth Manghat told Reuters by telephone on Wednesday.

“The contribution of the healthcare business on overall revenues helped increase our profit,” he said.

EBITDA (earnings before interest, tax, depreciation and amortisation) climbed 10 percent to $39.7 million.

Revenues totalled $238 million, up 8.4 percent, while capital expenditure during the period was $37.1 million, up sharply from $12.9 million during the whole of 2011.

Much of the $325 million of capex approved by the company will be spent on healthcare projects during 2013-15, said Manghat.

NMC, founded by billionaire Indian entrepreneur B.R. Shetty, had total cash of $276.6 million in June versus $54.1 million in December 2011. The firm’s debt stood at $252 million in June compared with $182 million in December.

NMC forecast a positive outlook in revenues and profit for the second half of this year. “Our distribution business catches up in the second half,” Manghat said.

Abu Dhabi-based NMC, one of the largest private sector healthcare providers in the United Arab Emirates, operates general and specialised hospitals, pharmacies and medical centres.

(Reporting by Stanley Carvalho; Editing by Mark Potter)