Burjeel Holdings delivers mid-teens revenue growth in Q3'24

Burjeel Holdings PLC, a leading super-specialty healthcare services provider, achieved strong top-line growth of 14.1 per cent in Q3’24, driven by an 11.8 per cent rise in patient footfall and improved patient yield, despite a high revenue base from Q3’23 (up 24 per cent YoY). In the first nine months of 2024, revenue increased by 11.7 per cent to Dh3.7 billion, with total patient visits reaching 4.8 million. Key contributors included Burjeel Medical City, Burjeel Specialty Hospital Sharjah, Medeor Hospital Dubai, and Burjeel Royal Hospital Asharej.

Nine-month inpatient and outpatient footfall growth reflected strong demand for its high-quality healthcare, especially in oncology, orthopedics, pediatrics, and women’s care. Medical oncology revenue saw significant expansion (up 50 per cent YoY), contributing around 20 per cent of incremental revenue growth. Inpatient footfall rose by 13.3 per cent, boosting bed occupancy to 66 per cent, with over 60,800 surgeries completed (+13 per cent YoY). Outpatient volume grew by 7.9 per cent, supported by new facility expansions and effective cross-group referral capabilities.

EBITDA grew by 5.1 per cent in Q3’24, reaching Dh273 million, despite higher direct costs from ongoing investments in medical oncology aimed at driving future high-yield patient growth. The increase in direct costs also reflects the ramp-up of new assets and higher overheads due to additional marketing efforts to promote the international patient program and support regional expansion.

Excluding the impact of new assets, Q3’24 EBITDA rose by 11.4 per cent to Dh290 million, with a 22.0 per cent margin. The Group recorded Dh16 million in losses from the ramp-up of recently opened facilities, which include two day surgery centers and two medical centers in the UAE, as well as 28 PhysioTherabia centers in KSA. For 9M’24, EBITDA, excluding one-offs and new assets performance, increased by 7.4 per cent to Dh781 million, with a 21.1 per cent margin.

Net profit before taxes rose 9.8 per cent in Q3’24 to Dh151 million, driven by robust business performance and lower depreciation. For 9M’24, net profit excluding one-offs and taxes increased 7.4 per cent to Dh389 million.

Burjeel Holdings said it maintains a positive outlook for its mid- and long-term growth, with the Group well positioned to capitalize on favorable macro trends in the UAE and Saudi Arabia, including strong GDP growth forecasts, rapid population growth, and increasing demand for healthcare capacity. We refined our year-end guidance to account for short-term changes in the service mix and accelerated investments in network expansion and super-specialty care promotion.

group revenue in the third quarter grew to Dh1.3 billion, driven by strong patient footfall growth and improved patient yield.

Hospitals revenue increased to Dh1.2 billion, primarily boosted by 34 per cent YoY growth in the oncology segment. Hospitals EBITDA grew, driven by the performance of BMC and other high-growth assets. Hospitals net profit before taxes rose sharply, reflecting robust business performance and optimized D&A.

Group patient growth accelerated in Q3’24, bringing the total to 4.8 million in 9M’24.

Group net profit before taxes improved 10 per cent, despite ongoing investments in oncology, network expansion, and marketing.

Burjeel Holdings continued to execute its strategic growth plan during the first nine months of 2024, investing significantly to expand its presence in the UAE, penetrate the fast-growing Saudi Arabian market, and broaden its super-specialty care offerings. “These investments position the group to capitalize on favorable macroeconomic trends and rising demand for advanced healthcare across the region, driving higher patient yields, increased market penetration, and top-line growth,” a statement said.

In Q3’24, the Group achieved key milestones, including the launch of the UAE’s largest fertility center, offering comprehensive reproductive healthcare from conception to delivery. Burjeel also enhanced its specialty care by partnering with the Abu Dhabi Stem Cells Center to build an integrated ecosystem for bone marrow transplants, cellular therapy, and advanced care for patients with blood cancer, genetic disorders, and autoimmune diseases. Additionally, Burjeel expanded in its two key markets, opening 11 new PhysioTherabia centers in Saudi Arabia, bringing the total to 28 branches, and securing agreements with major insurers. In the UAE, it announced nine new community clinics to improve access to primary healthcare. These facilities are set to cater to over 300,000 outpatient visits per year, facilitating cross-referrals to Burjeel’s secondary, tertiary, and quaternary care hospitals.

John Sunil, chief executive officer of Burjeel Holdings, said: “During the first nine months of 2024, Burjeel Holdings achieved strong market penetration through the expansion and the ramp-up of our regional network. In the third quarter, revenue growth accelerated to 14 per cent, driven by a 12 per cent rise in patient footfall and improved yield. This progress reflects our enhanced super-specialty capabilities, backed by strategic investments to propel future growth and profitability.

“At Burjeel Holdings, we continue to expand through pivotal partnerships that increase access to high-quality healthcare across the region. Aligned with the UAE’s healthcare strategy, we will launch nine community-based primary care clinics, enhancing accessibility and strengthening our network through increased patient referrals. In Saudi Arabia, our fast-growing PhysioTherabia network aligns with Vision 2030, promoting wellness and rehabilitation, with plans to introduce new day surgery and primary care centers to improve health and well-being for diverse populations.

“We remain committed to our mid-term outlook, driven by strategic investments in high-growth assets, super-specialty care, and regional expansion that strengthen our healthcare services. The anticipated ramp-up of high-yield services, along with increasing patient footfall locally and internationally, provides a solid foundation for long-term growth and strong returns, supporting our value-creation strategy.”