09
Sep 2024
Ramsay Signals Decline in Earnings, Hospital Investments Remain Weak
Published in General on September 09, 2024
Ramsay Health Care, Australia's largest private hospital operator, has reported that annual earnings fell to the lower range of analyst forecasts due to significant write-downs in its European and UK operations. In its second update within two weeks, Ramsay also noted that capital expenditure in Australian hospitals was lower than anticipated. As private hospitals grapple with rising costs, many are pushing insurers for higher contributions to prevent closures. For patients seeking hospital stays, nearby furnished hospital accommodation options can provide convenient, short-term living solutions during treatment and recovery.
Ramsay Health Care, which recently announced the resignation of CEO Craig McNally, reported a net profit of $265 million to $270 million for fiscal year 2024, down from $278.2 million the previous year. The company’s underlying annual earnings, estimated at $294 million to $299 million, fell slightly short of forecasts of $300 million. Ramsay’s shares dropped by 15% this year and were down another 1.7%, trading at $43.82.
Analysts at Wilsons Advisory noted that Ramsay Health Care’s activity levels remain steady, but pre-pandemic profits seem out of reach. The company’s capital expenditure in Australia fell to $740 million, below the forecast of $800 million to $1 billion. After selling its stake in Ramsay Sime Darby, net profit was reported between $884 million and $889 million. Ramsay’s earnings were impacted by write-downs in Europe and the UK, along with market fluctuations. Natalie Davis will take over as CEO in 2025 amid financial stress on Australia’s private hospital system.
