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20 Sep 2024 16:40

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PureHealth Reports 31% Revenue Growth And EBITDA Of AED 2.4 Billion In 2023

PureHealth achieves a revenue of AED16.4 billion for FY2023 versus AED12.5 billion for FY2022, marking a remarkable 31% increase year-on-year.

The Group has reported EBITDA of AED2.4 billion and Total Comprehensive Income of AED1.1 billion for FY2023.

Group has a net cash position of AED7.2 billion for FY2023 given low levels of debt.

Group’s international M&A strategy on track with Circle Health Group acquisition completed in January 2024.

PureHealth Holding PJSC (“PureHealth” or “the Group”), the largest vertically integrated healthcare platform in the Middle East, today announced its financial results for the period ended December 31, 2023, delivering a strong performance attributed to the Group’s local and international expansion over recent years ahead of its successful initial public offering in December 2023.

As part of PureHealth’s growth journey, the Group had successfully completed a series of value-accretive acquisitions, enhancing operational capacity and subsequently revenue generation capabilities. During the fourth quarter of 2022, PureHealth welcomed SEHA, Daman, and TLC, reputable players spanning healthcare subsectors including hospital operators, health insurance providers, and pharmacies. Committed to its vision to bring healthcare from Abu Dhabi to the world, the Group expanded to the USA in 2023, marking its first international acquisition – a AED1.8 billion stake in Ardent Health Services.

Today, having celebrated a bumper IPO, PureHealth delivered robust revenues of AED16.4 billion for the FY23, a remarkable growth of 31% compared to AED12.5 billion in the previous year, attributed to a stellar performance by the Group’s “Hospitalisation” vertical and having recognised the full-year impact of acquisitions tracing back to the fourth quarter of 2022 and mid-year 2023. Mirroring topline growth, the Group recorded an EBITDA of AED2.4 billion in FY23 and an EBITDA margin of c.15% driven by cost-optimization and realized synergies. On an absolute basis, PureHealth reported a net profit of AED965 million in FY23.

Hamad Al Hammadi, Chairman of the Board of Directors of PureHealth, said: “The Group’s robust performance coupled with the series of successful acquisitions to date positions PureHealth among the world’s leading healthcare groups, benefitting people in an increasing number of countries while reliably leading the way in executing development objectives of our nation. Testament to this ongoing success is the tireless pursuit of our employees as we continue to build our portfolio across the UAE and internationally. As we continue to move forward, we remain committed to maintaining this momentum and driving further progress in the years ahead.”

The Group reported a significant growth in total assets of c.17% year-on-year to AED28.2 billion. The increase is primarily due to the inclusion of the Group’s AED1.8 billion (US$ 500 million) investment in Ardent Health Services in May 2023 and proceeds of AED3.62 billion from its IPO in December 2023. Despite PureHealth’s accelerated expansion, it continues to hold a strong cash position coupled with a debt-to-equity ratio of 0.2x at end of 2023 and net cash to EBITDA ratio of 3.0x, key to its growth ambitions of further expanding its global footprint.

Commenting on the results, Shaista Asif, Group Chief Executive Officer of PureHealth, said: “The past few years have presented unprecedented changes as the pandemic disrupted lives and healthcare access globally. PureHealth played a crucial role in combating the pandemic across the Emirates, and amidst these challenges, a calling emerged – an opportunity to empower individuals to live healthier, happier, and longer lives, regardless of their location.

She added: “Reflecting the successful integration of our acquisitions as we move forward, we remain guided by a three-pronged strategy to further drive global expansion through strategic acquisitions that broaden our reach, enhance healthcare delivery through innovation, and maximize societal impact through sustainable stewardship. With this bold vision and unwavering dedication of our employees, we are poised for continued success.”

In January 2024, PureHealth completed the strategic acquisition of Circle Health Group, a leading UK hospital operator, for US$1.2 billion (pre-debt), providing immediate access to the UK’s largest private hospital network.

Looking ahead, PureHealth remains optimistic about its future prospects, supported by its strong financial performance, well-defined growth strategy, and commitment to operational excellence. Over the mid-term (2024-2027), the Group aims to strategically expand its global footprint, unlock synergies from its acquisition of Circle Health and drive value for its stakeholders.

 

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