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Highlights

  • Ramsay recorded a rise of 11.58% YoY in FY23 revenue to AUD 15.33 billion
  • Improved performance across all the regions boosted the company’s yearly revenue
  • Paul Ramsay Holdings Pty. Ltd. has the maximum stake in the firm with a shareholding of nearly 18.74%

Ramsay Health Care Limited (ASX: RHC) is an ASX-listed health care company which offers multiple acute and primary health care services. The company operates through its owned and operated pharmacies, day surgery facilities, primary care clinic, imaging centres and private hospitals, the company has presence in Australia, the UK and several other countries.

In the financial year 2023 (FY23), the AUD 12.03 billion market cap company registered a rise of 11.58% YoY in revenue to AUD 15.33 billion, 14.59% YoY increase in EBIT to AUD 1.02 billion and 8.890% YoY surge in NPAT to AUD 298.10 million.

RHC’s financial performance was underpinned by enhanced performance across all the regions and revenue generated from the acquired entities like GHP, smaller Nordics and Elysium. Earnings from Elysium and Ramsay Sante were lower, however significant earnings from Ramsay UK, Australia and RSD, boosted bottom line of the company.

Top 10 shareholders of RHC

The top 10 shareholders of RHC have nearly 36.81% shareholding in the company, while the top four have around 27.77% shareholding. Paul Ramsay Holdings Pty. Ltd. and State Street Global Advisors Australia Ltd. have the highest stake in the firm, with a shareholding of ~18.74% and ~3.39%, respectively.

Recent business update

Through an ASX update dated 13 November 2023, the company informed about the sale of Ramsay Sime Darby (RSD) joint venture to Columbia Asia Healthcare Sdn. Bhd. For a consideration of AUD 2.0 billion. RSD is a 50:50 joint venture between RHC and Sime Darby Holdings Berhad. The transaction is expected to be completed by the end of 3QFY24, subject to certain regulatory approvals.

Outlook

The company expects mid-single digit top line growth in FY24, backed by low to mid-single digit growth in reimbursement and activity levels.

The sale of RSD is anticipated to decrease the company’s debt and create interest cost savings of around AUD 55 million annually.

In FY24, the digital and data opex investment in Australian is anticipated to surge by AUD 34-44 million over FY23 and expected digital data capex is AUD 16-18 million. The expected range of net interest expense is AUD 570-600 million, projecting a higher average base rate.

Share performance of RHC

RHC shares closed 0.9% down at AUD 51.97 apiece on 14 November 2023. With this, RHC’s shares have witnessed a fall of 15.50% in the last one year and a decline of 14.44% in the past six months.

The 52-week high of RHC is AUD 69.66, recorded on 12 April 2023, while the 52-week low is AUD 46.76, recorded on 25 august 2023.

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 14 November 2023. The reference data in this report has been partly sourced from REFINITIV.