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740
buried
holdings
John Sunil, Chief Executive Officer of Burjeel Holdings, said:
"Burjeel Holdings delivered another strong set of results during the third quarter of 2023, as we focused on
executing our strategy to drive patient yields through the provision of highly specialized complex care
delivered by world-class medical professionals as we further ramped up our growth assets. This enabled
us to accelerate our growth trajectory with Group revenue increasing 23.8% and EBITDA growing by an
impressive 34.1% in the third quarter of 2023, driven by both an increase in patient footfall and the
expansion of our complex care offering.
“Our international expansion continues at pace with the opening of our first four PhysioTherabia centers in
Saudi Arabia. With ambitious growth plans to open 60 centers by 2025, PhysioTherabia marks the first step
of our KSA journey. We continue to explore various additional CAPEX efficient options in Riyadh to tap into
the huge potential that Saudi Arabia’s healthcare market represents. We are confident that the Kingdom
will significantly drive our long-term growth story.
“Looking ahead, Burjeel will continue solidifying its position as the region’s leading referral hub for complex
and innovative medical care by expanding the breadth of our offering and investing in technology to deliver
seamless patient journeys with superior clinical outcomes.”
Revenue Growth Accelerates
Burjeel Holdings delivered robust revenue growth of 17.2% to AED 3.3 billion for the first nine months
of 2023, driven by a 10.6% increase in total patient footfall to 4.4 million patients. Revenue growth
accelerated during the third quarter of 2023, delivering an increase of 23.8% to AED 1.2 billion due to the
rising volume of complex medical procedures. Group bed occupancy is at 60% for the nine months of 2023.
Thus, Burjeel has enough room within the invested infrastructure to grow organically without any further
investment, with significant headroom remaining to ramp up critical growth assets further.
EBITDA for the nine months of 2023 increased by 19.5% to AED 727 million, with EBITDA margin
expanding to 21.9%, as the Group focused on providing higher-yielding services. EBITDA for the third
quarter of 2023 grew substantially by 34.1% to AED 260 million.
Net profit for the nine months of 2023 rose 76.4% to AED 362 million, enabled by revenue growth,
increased operational efficiencies and lower finance costs. Net profit increased by 162.6% to AED 137
million during the third quarter of 2023. As previously indicated, when the growth assets start performing,
incremental revenue can be generated with marginal impact on cost, leading to significant bottom-line
growth.
Robust Performance Across Segments
The Hospitals segment remains the primary contributor to the Group's revenue, contributing 89% of total
Group revenue for the nine months of 2023, consistent with the previous year.
Revenue and EBITDA in the Hospital segment increased by 17.9% and 31.1%, respectively, during the
nine months of 2023, driven by higher patient footfall and the Group’s continued focus on advanced
specialty services. EBITDA margin in the Hospitals segment improved to 22.6% for the nine months of
2023. During the third quarter of 2023, Hospital segment revenue and EBITDA increased by 25.4% and
46.9%, respectively, and EBITDA margin enhanced to 23.2%.
The Medical Centers segment, which plays a significant role as the Group’s key referral source, delivered
revenue and EBITDA growth of 15.3% and 20.6%, respectively, for the first nine months of 2023, with
EBITDA margin increasing to 28.9%. During the third quarter of 2023, revenue and EBITDA increased by
18.2% and 14.5%, respectively, at a stable EBITDA margin of 30.5%.Complex Specialty Care Propels Burjeel Medical City (BMC) Performance
Burjeel's flagship hospital asset, BMC, delivered stellar performance, with revenue growth of 40.6% to
AED 737 million for the first nine months of 2023. EBITDA rose substantially, up 74.8% to AED 108 million
with EBITDA margin improving to 14.7% for the first nine months of 2023 compared to 11.8% for the first
nine months of 2022.
BMC’s outstanding growth was driven by a significant increase in patient volumes and the number of
high value complex procedures performed. Total patient footfall grew by 66.8% during the first nine months
of 2023, with bed occupancy reaching 46% for the first nine months of 2023 compared to 36% for the first
nine months of 2022.
BMC’s performance demonstrates its continued success as a critical referral hub providing cutting-edge
complex specialities. The Hospital still has significant utilization headroom, highlighting its potential to
contribute to Burjeel’s long-term value-creation plans.
Strong Balance Sheet Powering Growth
Cash Flow from Operating Activities increased by 64.0% during the nine months of 2023, driven by
EBITDA growth and optimization of working capital. Additionally, Free Cash Flow (FCF) Conversion1 grew
to 45%, up from 35% in the prior year.
The Group's Net Debt / Pre-IFRS 16 EBITDA decreased from 1.5x as of 31 December 2022 to 1.3x as of
30 September 2023. The strength of the group’s balance sheet provides adequate financial flexibility to
pursue growth opportunities going forward.
The Group’s share capital was AED 521 million as of 30 September 2023.
Positive Outlook Maintained
The UAE and KSA continue to experience favourable macro tailwinds, with strong predicted mid-term
GDP growth, rapid population growth and increasing demand for added healthcare capacity. Regional
aspiration to expand the non-oil-based economy will boost the demand with limited supply in a regulated
environment, strongly driving the Group's performance.
Burjeel Holdings continues to see strong demand for its differentiated specialty healthcare offering.
With state-of-the-art infrastructure consisting of several high-growth assets and an expansive referral
network, Burjeel remains in a solid position to deliver on its value-creation strategy of increasing patient
yield and utilization while unlocking strategic expansion opportunities. The Group continues to invest in
deploying technology to provide a seamless patient journey and drive clinical efficiency.
Dividend Policy
Burjeel is keen to deliver value to its stakeholders, proven by the payment of interim cash dividends
with an expected future pay-out ratio of 40% to 70% of net profit, contingent on investment requirements
for additional growth plans. For the first half of 2023, the Group paid ~AED 95 million or ~AED 0.02 per
ordinary share as its debut interim dividend. This represents 42% of net profit for the first half of 2023.
(1) FCF = EBITDA – Maintenance Capex – Change in Working Capital. Working Capital = Inventory + Receivables – Payables (including accruals).
Change in Working Capital calculated as working capital balance in prior period less working capital balance in current period. FCF conversion = Free
cash flow / EBITDA.FY2023 Guidance
 Group revenue expected to EBITDA margin expected Maintenance CAPEX expected Net Debt/EBITDA2
grow in the high-teens to improve to at least to be approximately 2.5% of of less than 2.5x to
2021 levels (c.23%) revenue be maintained
 BMC revenue expected to
grow more than 50%  BMC EBITDA margin  Growth CAPEX of ~AED 85m
expected to improve to for digital transformation and
the mid-high teens UAE & KSA expansion
Mid-Term (2024-2027) Guidance
Group revenue growth Group EBITDA margin to Maintenance CAPEX expected Net Debt/EBITDA2
expected to normalize from gradually expand to to be approximately 2.5% of of less than 2.5x to
the mid-teens to the high- high-20s revenue be maintained
single-digit gradually
Driven by ramp-up of  Growth CAPEX of ~AED 215m
BMC to continue to ramp up growth assets, asset-light for digital transformation and
to reach beyond AED 2bn international expansion, UAE & KSA expansion
revenue p.a. as well as focus on
increasing patient yield
KSA expansion project to and operational
reach beyond AED 600m excellence
revenue p.a.
----------------------
Financial Review
(Q3’23 = Three-month period to 30 September 2023)
(9M’23 = Nine-month period to 30 September 2023)
AED millions Q3’23 Q3’22 Change 9M’23 9M’22 Change
Revenue 1,155 933 23.8% 3,317 2,832 17.2%
Total OPEX ex. D&A3 (899) (743) 20.9% (2,607) (2,238) 16.5%
EBITDA4 260 194 34.1% 727 608 19.5%
EBITDA Margin % 22.5% 20.8% 1.7pp 21.9% 21.5% 0.4pp
Net Profit for the Period 137 52 162.6% 362 205 76.4%
Net Profit Margin % 11.9% 5.6% 6.3pp 10.9% 7.2% 3.7pp
-----Ends-----
Conference call information
Date: Tuesday, 31 October 2023
(2) Calculated using pre-IFRS 16 EBITDA as EBITDA less Annual Lease Rental.
(3) Total OPEX ex. D&A – refers to Total Operating expenses excluding all Depreciation and Amortisation expenses.
(4) EBITDA includes Share of profit from associates.Time: 4:00 pm Gulf Standard Time (GST)
Please find the details of the conference call below.
Webcast Link
United Arab Emirates: 800 0320690
United Kingdom: +44 203 984 9844
United States: +1 718 866 4614
Global Dial-In Numbers
Access Code: 305568
----------------------
About Burjeel Holdings
Founded in 2007, Burjeel Holdings is one of the leading private healthcare services providers in the MENA
region. With a network of 68 assets, including 16 hospitals and 30 medical centers, as well as pharmacies
and other allied services, the group provides the highest standard of patient care in the region. Burjeel
Holdings’ brands include Burjeel Hospitals, Medeor Hospitals, LLH Hospitals, Lifecare Hospitals, and
Tajmeel. It has 12 JCI-accredited facilities, with a total 1,708 patient beds across its operations in the UAE
and Oman, and holds a leading position in the UAE. The Group has comprehensive cancer care facilities
in the UAE and is the country’s leading mother and childcare provider.
Contacts
Media: Investor Relations:
Stephen Smith Sergei Levitskii
Senior Vice President – Teneo Head of Investor Relations – Burjeel Holdings
burjeelholdings@teneo.com ir@burjeelholdings.com
M: +971 58 546 1588 M: +971 50 380 2383

Sentiment: positive