Half Year 2024 Ramsay Health Care Ltd Earnings Call Transcript
Key Points
- Ramsay Health Care Ltd (ASX:RHC) reported a 5.4% growth in total hospital admissions, driving a 7.8% revenue growth on a constant currency basis.
- The company successfully negotiated improved revenue indexation with several health funds and public payers, with benefits expected to flow through in the second half.
- Ramsay Health Care Ltd (ASX:RHC) completed the sale of Ramsay Sime Darby, strengthening the balance sheet and reflecting disciplined portfolio management.
- The UK region reported a 114% overall increase in EBIT in local currency, driven by strong growth in admissions and productivity improvements.
- The company is making significant investments in digital capabilities, expected to deliver further productivity benefits and improve patient safety.
- Higher net financing charges and weakness in the Australian dollar against the euro and pound negatively impacted earnings.
- The reliance on government support payments in France is declining, impacting earnings as the business transitions away from one-off compensation payments.
- Non-recurring items contributed significantly less to the results compared to the prior period, affecting overall profitability.
- Ongoing cost pressures, particularly wage inflation, are not fully reflected in reimbursement structures, slowing margin recovery.
- The company faces challenges in the construction sector, including higher costs and slow approval processes, impacting the development pipeline and capital expenditure.
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Good morning, everyone, and thank you for joining us today as we present our FY24 interim results. I'm Craig McNally, and I am joined by Martyn Roberts, our Group Chief Financial Officer. Today, we will provide an overview of our performance for the first six months of FY24, followed by an update on our group's strategic direction and outlook.
Before I begin, I'd like to mention that in 2024, Ramsay Health Care celebrates our 60 anniversary. It's 60 years since Paul Ramsay opened a small private hospital in Sydneyâs northern suburbs, and we've grown from there to become a leading Australian company and one of the largest private health care operators in the world.
I'm immensely proud of our achievements over the decades and grateful to the incredible teams past and present, who have shared and driven our success and who deliver outstanding outcomes for our patients. As we pay tribute to Paul's incredible legacy, we are looking forward to the exciting opportunities and possibilities ahead.
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