Full Year 2024 Ramsay Health Care Ltd Earnings Call Transcript
Key Points
- Ramsay Health Care Ltd (RMSYF) reported a 7.3% growth in revenue from patient activity, driven by a 3.4% increase in group hospital admissions.
- The company successfully completed the sale of Ramsay Sime Darby, strengthening its balance sheet with leverage now at 2 times.
- Productivity improvements were noted, with labor costs as a percentage of revenue from patient activity declining by 100 basis points despite significant wage inflation.
- Ramsay Health Care Ltd (RMSYF) achieved a 6.7% increase in the full-year dividend to $0.80 per share, reflecting the Board's confidence in the outlook.
- The company made significant progress towards its sustainability targets, including a reduction in greenhouse gas emissions and achieving a 50% gender target across senior leadership teams.
- The growth rate in revenue slowed in the second half of the year due to factors such as the cost of living, tight government budgets, and government elections.
- Public payers have granted significant wage rises to various sectors of the economy while failing to recognize the impact on private hospital operators in tariff indexation.
- The company faced higher net financing costs, with non-cash mark-to-market movements on interest rate swaps impacting net financing costs negatively.
- The EBIT result was impacted by a negative contribution of $36.4 million, predominantly reflecting asset impairments in Europe and the UK.
- The outlook for growth in FY25 is expected to be lower than FY24, primarily due to cost of living issues and the return of the management contract for the Peel Health Campus in Perth to the government.
Good morning, everyone, and thank you for joining us today as we present our FY24 results. I'm Craig McNally and I'm joined by Martyn Roberts, our Group Chief Financial Officer. Today, we'll provide an overview of our performance for FY24, followed by an update on our group's strategic direction and outlook.
As we celebrate Ramsay's 60-year anniversary, I'd like to start by thanking our people and clinicians for their ongoing commitment to our patients, delivering on Ramsay's purpose of people caring for people, which has been the backbone of our success over the last 60 years.
Turning to the key takeaways from the year, we've seen activity levels continue to grow with group hospital admissions up 3.4% and a good improvement in activity in Elysium and our primary and allied healthcare activities in Europe. Combined with tariff indexation, we reported 7.3% growth in revenue from patient activity. The growth rate slowed in the second half, reflecting stronger growth in the previous
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