Ramsay Health Care Says Net Profit Rises 17% in Nine Months Through March

By David Winning

SYDNEY--Ramsay Health Care said its net profit rose 17% in the nine months through March as it regained momentum in surgical volumes and workplace pressures began to ease.

Ramsay reported an unaudited net profit of 235.1 million Australian dollars (US$156.9 million) in the first three quarters of its fiscal year, compared to A$201.6 million in the corresponding period a year earlier.

Revenue for the nine-month period rose by 11% to A$11.24 billion, which Ramsay said reflected growth in surgical admissions and a recovery in non-surgical admissions, along with contributions from Elysium Healthcare and acquisitions in Europe. Earnings before interest, tax, depreciation and amortization lifted 6.8% to A$1.47 billion.

"Whilst all regions continue to be impacted by labor shortages in key areas and inflationary pressures the operating environment continues to improve," Ramsay said in a regulatory filing.

Management continued to expect a gradual recovery in earnings through the remainder of the 2023 fiscal year, before a return to more normalized conditions over the following 12 months.

In support of that outlook, Ramsay said it continues to focus on negotiating improved terms with all payors to reflect the inflationary environment.

"A recovery in earnings for Elysium is dependent on the determination of an increased tariff applicable from 1st April 2023 from NHS England combined with increased occupancy and a reduction in the use of agency staff as a result of current recruitment initiatives," the company said. "A failure to realize these factors would result in the deterioration of Elysium's financial outlook in the near term and may adversely impact its valuation."

Write to David Winning at david.winning@wsj.com

(END) Dow Jones Newswires

May 02, 2023 18:45 ET (22:45 GMT)

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