Bumrungrad Hospital (BH) Q2 2024 earnings summary

Executive summary

• Achieved strong financial performance in Q2 and 1H 2024, with record-high margins and continued growth despite challenges in key international markets.

• Q2 2024 revenue grew 4.2% year-over-year (adjusted for a THB 60 million asset sale); 1H 2024 revenue up 6%, driven by international and expat segments.

• Q2 2024 net profit rose 10.5% year-over-year (14.5% adjusted); 1H 2024 net profit up 17.6% (19.7% adjusted).

• Maintained a diversified revenue base, with 66% from international patients and 34% from Thai patients.

• The auditor issued an unqualified review conclusion, confirming compliance with Thai Accounting Standard 34.

Financial highlights

• Q2 2024 revenue was THB 6,331 million, up 4.0% from adjusted Q2 2023; 1H 2024 revenue was THB 12,901 million, up 6.0% from adjusted 1H 2023.

• Q2 EBITDA margin reached a record 40.7%, with net profit margin at 30.5%, both the highest in company history.

• Q2 2024 operating profit was THB 2,310.8 million, up 9% year-over-year; 1H 2024 operating profit was THB 4,720.3 million, up 16.7%.

• Operating cash flow for 1H 2024 was THB 3,341 million; total cash and investments reached THB 12,262 million as of June 30, 2024.

• Interim dividend of THB 2 per share declared, the highest ever, representing nearly 41% of EPS.

Outlook and guidance

• Expecting single-digit top-line revenue growth for the remainder of the year due to a high base and ongoing market challenges.

• Anticipate continued strong performance in insurance and international segments, with Q3 and Q4 typically being higher seasons.

• Q3 2024 guidance provided, with continued focus on international patient growth and technology leadership.