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740
buried
holdings
John Sunil, Chief Executive Officer of Burjeel Holdings, said:
"Burjeel Holdings has performed remarkably well in the first half of 2023, achieving robust top-line and
bottom-line growth while making significant strides in operational and strategic advancements. Group half-
year revenue increased by 13.9% while net profit was up 47.0% y-o-y. Burjeel Medical City, our flagship
facility, continues to deliver remarkable growth, registering an impressive 34.5% revenue increase driven
by substantial growth in inpatient and outpatient footfall.
“During this period, our expansion plan gained substantial traction, preparing our first centers for opening
in the Kingdom of Saudi Arabia as part of our partnership with Leejam, a strategic move that reinforces our
regional presence. We added more world-class talent to our teams and I’m proud that we secured an
operations and maintenance contract with Al Dhannah Hospital, a key piece of infrastructure in an industrial
hub of the UAE.
“Our future growth will encompass further strategic geographic expansion, additional strategic alliances in
the field of transformative and complex medical care and continuous enhancement of our state-of-the-art
infrastructure. As a premier referral hub in the region, our expanding portfolio of services and focus on
identifying unique opportunities in healthcare will be key drivers for our future growth.
“We’re also pleased to have confirmed our first interim dividend payment, with an intention to return
approximately 95 million dirhams to shareholders in August 2023.”
Robust revenue growth drives significant bottom line improvement
Burjeel Holdings delivered robust growth in H1 2023, with revenue reaching AED 2.2 billion, a 13.9% y-o-
y increase. This increase was attributable to an 11.2% rise in total patient footfall, with more than 2.9
million patients seen in the half-year period. This saw inpatient bed occupancy increase to 59% in H1
2023, with significant headroom remaining to further ramp-up key growth assets.
EBITDA increased by 12.7% year-on-year to AED 467 million in H1 2023. Burjeel Holdings maintained a
steady EBITDA margin of 21.6%.
Net profit in H1 2023 saw impressive year-on-year growth of 47.0% to AED 225 million, due to a
combination of higher revenues, increased operational efficiencies and lower finance costs stemming from
ongoing debt reduction.
The Group remains focused on increasing the proportion of high-yielding complex care and complex
surgeries in its overall service mix, delivering a significant impact on the Group’s topline and medium-term
margin expansion. Burjeel continues to increase and broaden the mix of complex surgeries performed.
Key segments deliver strong margin expansion
The Hospitals segment remains the primary contributor to the Group's revenue, comprising 88.7% of total
Group revenue for the period, consistent with the previous year.
Revenue and EBITDA in the Hospital segment increased by 14.2% and 23.6% respectively, driven by
higher patient footfall, and the Group’s continued focus on advanced specialty services. EBITDA margin in
the Hospitals segment witnessed notable improvement from 20.6% in H1 2022 to 22.3% in H1 2023.
EBITDA in the Medical Centers segment rose by 24.5%, outpacing revenue growth of 13.7%. EBITDA
margin increased from 25.6% in H1 2022 to 28.1% in H1 2023.Burjeel Medical City (BMC) continues to be a significant growth enabler with a focus on high-
potential complex care services
In H1 2023, Burjeel's flagship hospital asset, BMC, achieved robust growth, witnessing a 34.5% increase
in revenue to AED 475 million. The hospital recorded an impressive 70.9% growth in total patient footfall
during the same period. Inpatient bed occupancy grew from 29.7% in H1 2022 to 43.5% in H1 2023, with
outpatient capacity utilization rising from 31.8% to 38.9% over the same period.
Cementing key international partnerships and expanding complex services
Burjeel Holdings forged several partnerships during H1 2023. The Group partnered with Northwell Health,
the largest healthcare provider in New York State, to launch a highly advanced Neuroscience Institute in
Abu Dhabi.
Burjeel Holdings also partnered with BridgeBio Pharma, Inc., a commercial-stage biopharmaceutical
company focused on genetic diseases and cancers, for early diagnosis and treatment of rare diseases or
disorders in the region.
The Group also launched the Advanced Gynecology Institute at BMC, which offers advanced and
comprehensive care including gynecological surgeries, minimally invasive procedures, and complex
gynecology care for a wide range of conditions, including menorrhagia, fibroids, and benign ovarian
masses.
These strategic alliances fortify Burjeel Holdings' pursuit of medical excellence, while also helping to elevate
the Burjeel brand in international medical communities.
Strong balance sheet enables future growth
The Group's Net Debt / Pre-IFRS 16 EBITDA decreased from 1.5x as of 31 December 2022 to 1.2x as of
30 June 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 at H1 2023.
In H1 2023, the Group achieved a remarkable 212.7% growth in Cash Flow from Operating Activities,
propelled by substantial EBITDA growth and optimization of working capital. Additionally, H1 2023 Free
Cash Flow (FCF) Conversion1 increased to 50%, up from 33% in the prior year.
Debut interim dividend confirmed
In line with our dividend policy, we aim to pay cash dividends from 2023 onwards, on the expected basis of
a pay-out ratio of 40% to 70% of net profit, dependent on investment requirements for additional growth
plans.
Burjeel Holdings’ Board of Directors have recommended a pay out of ~AED 95 million or ~AED 0.02 per
ordinary share as the debut interim dividend for H1 2023. This represents 42% of net profit for H1 2023.
The record date for dividend is set for 13 August 2023 and the payable date is up to 1 September 2023.
Positive on outlook and long-term value creation
Burjeel Holdings maintains a positive outlook underpinned by its differentiated business model, state-of-
the-art infrastructure, and strategy to increase asset utilization and patient yield. With significant scope to
ramp up its existing assets, and the addition of an expected c. 80 specialty beds across existing facilities,
(2) 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.Burjeel is uniquely positioned to deliver growth with a limited requirement for additional capital expenditure.
The Group continues to explore O&M and acquisition opportunities in the MENA region.
Detailed guidance
 Group revenue is expected EBITDA margin expected Maintenance CAPEX expected Net Debt/EBITDA2
to grow organically in the to improve to at least to be approximately 2.5% of of less than 2.5x to
high teens 2021 levels revenue be maintained
 BMC revenue expected to BMC EBITDA margin  The Group may deploy
grow more than 1.5x expected to improve to Growth CAPEX (including
mid-high teens M&A) funded through a mix of
debt and equity.
----------------------
FINANCIAL OVERVIEW
(Q2 2023 = Three-month period to 30 June 2023)
(H1 2023 = Six-month period to 30 June 2023)
AED millions Q2 2023 Q2 2022 % Change H1 2023 H1 2022 % Change
Revenue 1,077 926 16.3% 2,162 1,898 13.9%
Total OPEX ex. D&A3 (860) (729) 17.9% (1,708) (1,494) 14.3%
EBITDA4 225 201 12.0% 467 414 12.7%
EBITDA Margin % 20.9% 21.7% (0.8pp) 21.6% 21.8% (0.2pp)
Net Profit for the Period 103 68 51.4% 225 153 47.0%
Net Profit Margin % 9.6% 7.4% 2.2pp 10.4% 8.1% 2.3pp
-----Ends-----
Conference call information
Date: Friday, 4 August 2023
Time: 3:00 pm Gulf Standard Time (GST)
Please find the details of the conference call below.
Webcast Link
United Kingdom (Local): +44 20 3936 2999
United States (Local): +1 646 664 1960
United Arab Emirates (Toll-free): +971 800 035704553
Global Dial-In Numbers
Access Code: 190992
(2) Calculated using pre-IFRS 16 EBITDA as EBITDA less Annual Lease Rental Payments.
(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.--------
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 62 assets, including 16 hospitals and 24 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 1,660 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 2383411,
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rv 1Burjeel Holdings reports a positive performance in the first six months of 2023 with strong
growth both in top-line and bottom-line whilst making significant operational and strategic
progress. Revenue for YTD June 2023 is AED 2161.8 million, an increase of 13.9% year-on-
year basis, driven by utilization gains in the Hospitals and Medical Centers segments, where
revenues increased by 14.2% and 13.7% respectively.
Revenue 2,161.8 1,898.4
1,077.0
926.4
AED 2161.8 Mn
13.9% increase (YoY) H1-23 H1-22 Q2-23 Q2-22
EBITDA 225.4
467.0
414.2 201.3
AED 467.0 Mn
12.7% increase (YoY) H1-23 H1-22 Q2-23 Q2-22
Net Profit
224.7 103.4
152.9 68.3
AED 224.7 Mn
47.0% increase (YoY) H1-23 H1-22 Q2-23 Q2-22
Key Highlights during the period
• Group revenue was AED 2,161.8 Mn, with a 13.9% YoY increase for the first six months,
while the H-1 2022 revenue was AED 1,898.4 Mn.
• Group EBITDA was AED 467.0 Mn, with a 12.7% on YTD June basis while H1 2022 EBITDA
was AED 414.2 Mn.
• Group net profit at AED 224.7 Mn, up 47.0% till YTD June basis while net profit for H1 2022
was AED 152.9 Mn.
Management Discussion & Analysis
Burjeel Holdings is pleased to present its report on the performance of the Group for the period
ended 30th June 2023. This report should be read in conjunction with the interim condensed
consolidated financial statements for the same period. The Company has reported a strong
performance primarily led by its hospital segment aided by the Group’s continued focus on
high-value, super specialty care.Summary of Financial Results:
Income Statement Summary (AED'Mn) H1 23 H1 22 YOY%
Revenue 2,161.8 1,898.4 13.9%
EBITDA 467.0 414.2 12.7%
EBITDA Margin 21.6% 21.8%
Net Profit 224.7 152.9 47.0%
Net Profit Margin 10.4% 8.1%
Balance Sheet Summary (AED'Mn) H1 23 FY 22
Current Assets 1,878.1 1,602.9
Total Assets 4,882.8 4,685.1
Total Equity 1,342.6 1,117.8
Current Liabilities 1,484.8 1,435.7
Total Liabilities 3,540.2 3,567.3
Income Statement Analysis for the period ending June 2023
Key Variance analysis (AED’Mn)
Particular H1-23 H1-22 Change
Revenue 2,161.8 1,898.4 13.9%
Inventories Consumed -517.0 -453.1 14.1%
Doctors’ and other employees’ salaries and benefits -966.9 -815.5 18.6%
Provision for expected credit losses -35.6 -38.0 -6.3%
Other general and admin expenses -188.6 -187.7 0.5%
Share of profit from associates 13.3 10.1 31.5%
EBITDA FOR THE YEAR 467.0 414.2 12.7%
Finance costs -70.6 -105.5 -33.1%
Interest income from related parties 0.0 28.7 -100.0%
Depreciation and amortisation -171.7 -184.5 -7.0%
PROFIT (LOSS) FOR THE YEAR 224.7 152.9 47.0%
• Revenue increased by AED 263.4m (13.9%) mainly due to the growth in clinic revenue by AED
246.8 m which represents in-patient and out-patient revenue increased by AED 121.8 m and
AED 125.0m, respectively. Clinic revenues increased mainly due to continued growth in Burjeel
Medical City (BMC) by AED 117.5m, Burjeel Day Surgery Centre LLC (BDSC) by AED 29.4m
and Burjeel Royal Hospital LLC (BRH) by AED 31.9m
• Doctors’ and other employees’ salaries and benefits increased by AED 151.4m (18.6%), while
inventories consumed increased by AED 63.9m (14.1%) in line with growth in
operations/increase in revenues compared to prior period. The major impact in Doctors and staff
salaries is from BMC, BRH and BDSC which are High Growth Assets of the Group. The Group
has invested in the Highly Qualified Doctors and Medical Staff, which are on ramp up stage and
high potential to contribute in the revenue growth of the respective unit. The increase is
attributable to increase in average headcount by nearly 657 for these 3 entities.• Inventories consumption increased mainly due to growth in revenues across all hospitals in
aligned with group strategy on complex care.
• The depreciation charge decreased by AED 12.6 million (9.6% decrease). This is mainly due to
hospitals reflecting fully depreciated assets such as Medeor Abu Dhabi, Medeor Dubai and
Marina Health Promotion LLC and other hospitals and medical centers.
• Provision for expected credit losses has decreased by AED 2.4m (6.3% decrease) as compared
to prior period. The decrease is driven by improved collections as well Quality of claim has
improved with effort from RCM.
• There is no major change in total other overheads as compared to H1-22.
Segment Performance YTD June-23
The Group is organised into segments based on the operating activities & services.
All the segments during the period delivered a notable performance.
Medical
Segment Information Hospital Pharmacies Others Total
Centre
Revenue 1,917.4 207.0 33.3 4.1 2,161.8
% to Total 89% 10% 2% 0% 100%
EBITDA 427.5 58.1 4.5 -23.1 467.0
% to Total 92% 12% 1% -5% 100%
Net Profit 203.5 41.3 4.2 -24.3 224.7
% to Total 91% 18% 2% -11% 100%Balance Sheet Overview
Assets (AED million)
31st December
Particular 30th June 2023 Change
2022
NON-CURRENT ASSETS:
Property and equipment 1,938.6 2,001.4 -62.8
Intangible Assets 8.6 7.3 1.3
Right of use assets 1,001.8 1,018.5 -16.7
Capital work in progress 23.3 23.3 0.1
Amounts due from related parties 0.0 0.0 0.0
Investments in Associates 29.8 29.1 0.7
Long term deposits 2.6 2.6 0.0
Sub Total 3,004.7 3,082.2 -77.5
CURRENT ASSETS:
Cash and Bank Balance 216.9 150.0 66.9
Accounts receivable and prepayments 1,392.7 1,189.5 203.2
Inventories 245.3 239.9 5.4
Amounts due from related parties 23.2 23.5 -0.3
Sub Total 1,878.1 1,602.9 275.2
TOTAL ASSETS 4,882.8 4,685.1 197.7
• Property and equipment decreased by AED 62.8m due to the depreciation charge of AED
116.2m, partly negated by additions worth AED 53.4m. Additions comprise of building and
leasehold improvements worth AED 10.9m, medical equipment worth AED 22.6m, furniture and
fixtures worth AED 4.3m, computer and office equipment worth AED 10.3m and motor vehicles
worth AED 5.0m which is in the normal course of business.
• Right of use assets decreased by AED 16.7m mainly due to the depreciation charge of AED
53.4m, remaining decrease is offset due to remeasurement and addition amounting to AED
36.7m during the period.
• Investment in IKJC and in First IVF both increased by AED 0.7m, group has recorded share of
profit from these associates of AED 13.3 m, offset by dividend received of AED 12.6 m.
• Accounts receivable and prepayments increased by AED 203.2m. Increases is noted in all
hospitals in line with the incremental revenues in H1-23. Further, prepayments and other
balances have also increased by AED 7.3m.
• The overall increase in cash and bank balances reflects inflows from operations offset mainly by
cash outflows on PPE additions and repayments of lease rentals and interest-bearing loans and
borrowings in H1-23.Liabilities and Equity (AED million)
30th June 31st December
Particular Change
2023 2022
SHARE HOLDERS’ EQUITY:
Share Capital 520.5 520.5 0.0
Shareholder's contribution 3.6 3.6 0.0
Other Reserve 3.0 3.0 0.0
Share Premium 366.9 366.9 0.0
Accumulated Losses 408.4 194.6 213.8
Non-controlling Interests 40.2 29.2 11.0
Total Equity 1,342.6 1,117.8 224.8
LIABILITIES
NON - CURRENT LIABILITIES:
Interest bearing loans and borrowings 841.9 903.8 -61.9
Lease liabilities 1,045.1 1,078.0 -32.9
Derivative Liability 30.0 28.4 1.6
Gratuity Payable 138.4 121.4 17.0
Sub Total 2,055.4 2,131.6 -76.1
CURRENT LIABILITIES
Interest bearing loans and borrowings 369.6 357.0 12.6
Account payable & accruals 979.1 945.5 33.6
Amounts due to related parties 34.5 35.6 -1.1
Lease Liability 101.6 97.6 4.0
Sub Total 1,484.8 1,435.7 49.1
TOTAL LIABILITIES AND OWNER EQUITY 4,882.8 4,685.1 197.7
• Interest bearing loans and borrowings had a net decrease of AED 49.3m in H1-23, reflecting re-
payment of loans.
• Lease liabilities reported a net decrease of AED 28.9m due to lease payments of AED 86.3m
and remeasurement of AED 33.3m which was offset by interest expenses of AED 25.6m during
the period. (IFRS-16)
• Derivative financial instruments consist of interest rate swap to manage the interest rate risk of
Burjeel Hospital LLC. The movement of AED 1.6m in H1-23 relates to the fair value changes as
per Mark to Market valuation.
• Accounts payable and accruals increased by AED 33.7m (3.6%) mainly due to increase in
trade payable by AED 24.1m, retention payable by AED 19.5m, and partly offset by decrease
in Other payable by AED 9.5 m.
……………………..
John Sunil
Chief Executive Officer

Sentiment: positive