Burjeel + Agthia report 3Q earnings

A wider reach boosts Burjeel

Higher patient numbers helped Burjeel Holdings’ bottom line tick up 4.9% y-o-y to AED 184 mn in 3Q, with revenue growing 7.9% y-o-y to AED 1.5 bn, Burjeel said in its management discussion and analysis (pdf). Patient footfall rose 19.3% y-o-y during the quarter, and Burjeel also credited wider community reach with boosting its results. Inpatient volumes grew 17.3% during the quarter, while outpatient numbers recorded 19.3% growth and a 73% utilization rate. Hospitals provided the most revenue with AED 1.4 bn, but it was medical centers that saw the biggest growth at AED 133 mn, up 19.5%, as the operator expanded its community-based healthcare network — a trend we’ve been tracking recently.

9M was a similar story, with net income rising 6.6% y-o-y to AED 386 mn. Top line lagged slightly behind but still posted 5.6% growth to AED 4.3 bn. Bed occupancy reached 73% in 9M. Total patient footfall rose 13.1% y-o-y to 5.8 mn on the back of rebounding demand, wider community reach, and new facilities. Once again, the lion’s share of revenue came from hospitals, as better utilization and patient demand pushed their top-line contribution 6.9% higher y-o-y to AED 3.9 bn.

Costs start to catch up with Agthia

ADQ-owned F&B firm Agthia’s revenue rose 14.4% y-o-y in 3Q to AED 1.3 bn, while its bottom line shot up from AED 4.1 mn last year to AED 33.2 mn this quarter after EBITDA rose 39% y-o-y to AED 123.1 mn, the company said in its management discussion and analysis (pdf). Revenue was boosted by AED 104.7 mn in one-off sales in the water and food segment tied to the UAE’s food security program, management said.

On a 9M basis, revenue rose 9.6% to AED 3.9 bn, while net income jumped to AED 154.6 mn from AED 53.2 mn. Similarly, EBITDA was up 36.7% during the first nine months of the year. However, management flagged that one-off impairments last year largely accounted for the stark y-o-y comparisons. Excluding those, EBITDA was down 26.2% y-o-y on the back of cost pressures.

IN CONTEXT- Agthia’s 2Q results were buoyed by shoring up supplies ahead of the regional turmoil, while 3Q figures reflect the impact of restocking those supplies at current prices, management said. It says higher input and supply chain costs are likely to weigh on future earnings.