Ramsay Health Care Net Profit Rises 5.1%, Pivots on Strategy

By David Winning

SYDNEY--Ramsay Health Care said its annual net profit rose by 5.1% as surgical volumes improved, but the private hospital operator pointed to a shift in how it plans to navigate the aftermath of the Covid-19 pandemic.

Ramsay had been signaling that the 2024 fiscal year will mark a return to more normalized conditions following pandemic disruption when governments asked private hospitals to suspend elective surgery and free up capacity for a potential influx of Covid-19 patients.

"In light of higher development costs and disruption in the building industry combined with some of the trends that have emerged through Covid investment in the pipeline of opportunities will be modified to ensure disciplined capital allocation and focused execution of the strategy with Australia being the key priority for investment," Ramsay said on Thursday.

In Australia, Ramsay said it will put more emphasis on investing in digital and data platforms to support growth and make the business more efficient.

"Investment in the physical footprint will be focused toward treatment and diagnostics capacity in addition to investment in out of hospital activities to create a more integrated health care experience for patients," Ramsay said.

Ramsay reported a net profit of 298.1 million Australian dollars (US$191.5 million) for the 12 months through June after stripping out the impact of currency swings, up from A$274.0 million a year earlier. Earnings before interest and tax--or Ebit--increased by 13% to A$1 billion.

Ramsay, which has more than 500 hospitals and clinics in 11 countries, declared a final dividend of 25 Australian cents a share, bringing the annual payout to A$0.75 a share.

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

(END) Dow Jones Newswires

August 23, 2023 18:52 ET (22:52 GMT)

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