Burjeel Holdings Sees Profit Surge in 2022

Burjeel Holdings, a leading healthcare provider in the United Arab Emirates (UAE) and the broader Middle East and North Africa (MENA) region, announced strong financial performance for the full year 2022. The company reported a net profit of AED 355 million, reflecting a significant increase of 52% compared to the previous year. This upsurge highlights the success of Burjeel's yield enhancement strategy, which focuses on maximizing revenue per patient.

Burjeel's overall revenue also witnessed a healthy increase of 17% year-on-year, reaching AED 3. 92 billion in 2022. This growth was driven in large part by the company's flagship facility, Burjeel Medical City (BMC). BMC's revenue surged by an impressive 125% due to a rise in patient footfall and the introduction of complex specialties, leading to a higher average revenue per patient.

The company's profitability was further bolstered by a stable EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margin of 22%. EBITDA reached AED 878 million in 2022, representing a 13% year-on-year increase. Burjeel's strategic focus on improving asset utilization also yielded positive results, with hospital patient footfall increasing by 15% in FY 2022. Outpatient visits during the period surpassed the 5. 4 million mark.

Burjeel's financial health improved significantly in 2022, with the company achieving a Net Debt to EBITDA ratio of 1. 5x by the end of the year. This positive development follows Burjeel's successful initial public offering (IPO) on the Abu Dhabi Securities Exchange (ADX) in 2022, which generated proceeds of AED 2. 2 billion. The IPO funds were instrumental in reducing the company's net debt to AED 1. 1 billion.

Looking ahead, Burjeel Holdings remains optimistic about its future growth prospects. The company expects to achieve organic group revenue growth in the high teens in 2023, with EBITDA margins improving to at least reach the levels observed in 2021. Burjeel is also actively exploring various strategic growth opportunities, including mergers and acquisitions, to further solidify its position as a leading healthcare provider in the region. The company's expansion plans include entering the Saudi Arabian market through a joint venture with Leejam Sports Company.

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