Learn To Invest
Stocks Special Reports LICs Credit Funds ETFs Tools SMSFs
Video Archive Article Archive
News Stocks Special Reports Funds ETFs Features SMSFs Learn


Ramsay's Australian arm boosts FY profit

Simone Ziaziaris  |  30 Aug 2017Text size  Decrease  Increase  |  
Email to Friend

SYDNEY - [AAP] Ramsay Health Care (ASX: RHC) has lifted full-year net profit 8.6 per cent to $488.9 million on the back of growth in admissions and procedural volumes across the company's Australian business.

The country's largest private hospital operator said revenue from services for the year to June 30 grew marginally, up 0.2 per cent, to $8.7 billion, from $8.68 billion a year ago.

Managing director Craig McNally said growth across Ramsay's Australian arm helped deliver strong revenue and earnings (EBIT) growth, while its international business also performed well amid challenging tariff environments.

"Australia remains the powerhouse of our business and delivered another year of impressive earnings growth, driven by strong demand and our brownfield developments," Mr McNally said in a statement on Wednesday.

Mr McNally said the company had continued to invest heavily in the Australian market with the opening of two new facilities--The Southport Private Hospital in the Gold Coast and the Border Cancer Centre in Albury--this financial year.

The Australian and Asian sector contributed $4.7 billion in revenue, up 7 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.

Investing Compass
Listen to Morningstar Australia's Investing Compass podcast
Take a deep dive into investing concepts, with practical explanations to help you invest confidently.
Investing Compass

Mr McNally said the company expects strong growth in its Australian hospital business to continue in the year ahead and its business in its international markets are well positioned.

For the 2018 financial year, Ramsay is targeting core earnings per share growth of between 8 and 10 per cent on the current year's 261.4 cents.


* Net profit up 8.6pct to $488.9m

* Revenue up 0.2pc to $8.7bn

* Fully-franked dividend of 81.5cps, from 72 cents


AAP logo image

© [2017] Australian Associated Press Pty Limited (AAP) or its Licensors. This is the Morningstar service with content provided by AAP where indicated. AAP reserves all rights, including copyright, in services provided by it. The information in the service is for personal use only, does not constitute financial product advice (whether general or personal) and may not be re-written, copied, re-sold or re-distributed, framed, linked or otherwise used whether for compensation of any kind or not, without the prior written permission of AAP. You should seek advice from a professional financial adviser before making decision to acquire or dispose of a financial product.

This service is published for general information purposes only without assuming a duty of care. AAP is not in the business of providing financial product advice (whether personal or general advice), and gives no warranty, guarantee or other representation about the accuracy of the information or images contained in this service. AAP is not liable for errors, omissions in, delays or interruptions to or cessation of the services through negligence or otherwise. The globe symbol and "AAP" are registered trademarks.

© 2021 Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use or distribution. This information is to be used for personal, non-commercial purposes only. No reproduction is permitted without the prior written consent of Morningstar. Any general advice or 'regulated financial advice' under New Zealand law has been prepared by Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), or its Authorised Representatives, and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. For more information, refer to our Financial Services Guide (AU) and Financial Advice Provider Disclosure Statement (NZ). Our publications, ratings and products should be viewed as an additional investment resource, not as your sole source of information. Morningstar’s full research reports are the source of any Morningstar Ratings and are available from Morningstar or your adviser. Past performance does not necessarily indicate a financial product's future performance. To obtain advice tailored to your situation, contact a licensed financial adviser. Some material is copyright and published under licence from ASX Operations Pty Ltd ACN 004 523 782. The article is current as at date of publication.

Email To Friend