By Rebecca Thurlow
SYDNEY--Ramsay Health Care Ltd. (RHC.AU) said its annual net
profit rose 14% as it expanded its international network of
hospitals with a series of acquisitions in France and Malaysia.
The private hospital operator reported a net profit of 303.8
million Australian dollars (US$283.6 million) for the year through
June, up from A$266.4 million a year earlier. Core net profit, a
measure that strips out amortization and intangible items, rose 19%
to A$346.2 million, beating the company's guidance for a 16% to 18%
rise.
Ramsay said it expects core net profit and core earnings per
share to rise by 14-16% in the current financial year as it
continues to focus on acquisitions and expanding existing
facilities.
"Ramsay Health Care has now established a strong position in a
number of overseas markets," said Managing Director Christopher
Rex.
"We also look forward to producing increased benefits from our
successful capacity expansion programme in Australia given the
continuing strong demand for health services in this country." he
said.
Ramsay said it will pay a final dividend of 51.0 Australian
cents a share, up from 41.5 cents a year earlier.
Ramsay's shares have more than doubled in value over the past
two years, as investors clamor for health-care stocks as
Australians spend more on everything from doctor's visits to
over-the-counter drugs. Australia's government has also pinpointed
health care as a growth industry capable of cushioning the impact
on the economy of declining mining investment.
The company, which has a market value of around A$10 billion,
operates 151 hospitals and day surgery facilities across Australia,
the U.K, France, Indonesia and Malaysia.
Earnings before interest and tax from the Australian and Asian
business grew by 15% to A$480.2 million as recently built or
expanded facilities began to contribute revenue. Demand for
Ramsay's services is expected to continue to grow in coming years
as the population continues to age and a greater proportion of
people visit private hospitals, analysts say. The company opened a
new hospital in Australia's Queensland state during the year and
expanded sites in other parts of the country.
Ramsay has also been growing its international portfolio by
buying hospitals overseas. In June, Ramsay and its French joint
venture partner agreed to buy a controlling stake in General de
Sante SA (GDS.FR), positioning the Australian company as the
largest private-hospital operator in France.
Ramsay agreed to pay EUR429 million (US$566 million) for its
share of the acquisition. Generale de Sante has 75 healthcare
facilities, including 61 hospitals, and about 19,000 employees, and
brings Ramsay's portfolio in France to 115 facilities and 15,400
beds. The deal was Ramsay's fourth acquisition since it bought 57%
of French hospital operator Groupe Proclif in 2010.
Other deals during the year included the acquisition of three
hospitals in Malaysia in a joint venture with Sime Darby Bhd.
(4197.KU) and the purchase of 30 psychiatric facilities in
France.
- Write to Rebecca Thurlow at rebecca.thurlow@wsj.com
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