Australia’s largest private hospitals operator, Ramsay Health Care, expects strong growth to continue in its Australian hospitals business in the current financial year, after the group lifted its 2016/17 net profit by 8.6 per cent to $488.9 million.
Ramsay managing director Craig McNally says Australia remains the powerhouse of the group’s business.
“We expect strong growth in our Australian hospital business to continue in FY18 (the 2017/18 financial year) fuelled by ongoing growth in hospital utilisation rates as well as uplift from our brownfield development program,” Mr McNally said in a statement on Wednesday.
Ramsay also operates hospitals in France, the UK, Malaysia and Indonesia.
For fiscal 2018, Ramsay is targeting core earnings per share growth of between eight and 10 per cent on the current year’s 261.4 cents.
Mr McNally said growth in admissions and procedural volumes across the group’s Australian business helped deliver strong revenue and earnings growth in fiscal 2017, while the international business also performed well amid challenging tariff environments.
He said Ramsay had continued to invest heavily in the Australian market in the past financial year, opening two new facilities: the Southport Private Hospital in the Gold Coast and the Border Cancer Centre in Albury.
The Australian and Asian operations generated $4.7 billion in revenue, up seven per cent on a year ago, and $649.6 million in earnings (EBIT), up 13.6 per cent.
Ramsay’s business in France delivered $3.31 billion, up 0.3 per cent, while operations in the United Kingdom grew 4.6 per cent to $729.9 million.
Ramsay shares were $1.85, or 2.57 per cent, lower $70.03 at 1030 AEST.
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