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Highlights

  • In FY24, RHC sees 8.6% YoY increase in revenue to €1.18 billion, driven by price hikes and volume growth in France and Sweden.
  • FY24 net profit after tax (NPAT) increased significantly by 198.1% YoY, reaching AUD 888.7 million.
  • The company expect to see increase in NPAT from continuing operations in FY25.

Ramsay Health Care Limited (ASX:RHC) offers several primary and acute healthcare services across the UK, Australia and many other countries. The company is committed on expanding its footprint along with treatment capacity in Europe and growth corridors. In line with this, in the financial year 2024 (FY24), the company has invested nearly AUD 286 million in greenfield and brownfields projects across the organisation.

During the reported period, net profit after tax increased by almost 198.1% YoY to AUD 888.7 million. Meanwhile, net cash flow from operating activities jumped 1.0% YoY to AUD 1,292.8 million and 11.3% YoY rise in revenue from patient activity. This growth was underpinned by 3.4% increase in hospital admissions along with improvement in the occupancy rates and surge in the primary care and allied health services in Europe.

RHC performance in recent quarter

In the first quarter of FY25 (1QFY25), Ramsay Santé, a subsidiary of RHC, reported a 8.6% YoY increase in unaudited group revenue to €1.18 billion, driven by price increases and volume growth in France and Sweden.

During the period, unaudited group EBITDA increased by 15.1% YoY to €105.4 million, resulting in an EBITDA margin of 9.0%, up from 8.5% in the same period last year. At the end of the quarter, the company’s net financial debt stood at €3,777 million, including €1,952 million of IAS17 (pre-IFRS16) debt.

Top 10 shareholders of RHC

The top 10 shareholders of RHC have around 45.58% shareholding in the company. Paul Ramsay Holdings Pty. Ltd. holds the highest stake in the firm with a shareholding of nearly 17.58%, followed by Netwealth Investments Ltd. with shareholding of ~10.19%.

Outlook

The company’s immediate focus is on a series of transformation initiatives across each region that optimises and extracts greater value from the core hospital network. These efforts include enhancing the patient experience, driving sustainable top-line growth, improving productivity, and increasing operating efficiencies.

In FY25, the company expects to see increase in NPAT from continuing operations.

Share performance of RHC

RHC shares closed 2.41% lower at AUD 35.59 per share on 18 December 2024. Over the past year, RHC’s share price has dropped by almost 30.27% and in the three months, the share price has declined by 11.77%.

52-week high of RHC is AUD 57.23, recorded on 8 March 2024 and 52-week low is AUD 35.94, recorded on 17 December 2024.

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 18 December 2024. The reference data in this report has been partly sourced from EODHD/Others.