Wednesday, 17 June 2009

Philippines' Medical City reports 20% revenue growth

EMMIE V. ABADILLA
Manila Bulletin
http://www.mb.com.ph/articles/207084/medical-city-reports-20-revenue-growth

The Medical City (TMC) reported a 20 percent year-on-year growth for its 2008 revenues, from P2.69 billion in the preceding year to P3.22 billion due to combined service development and aggressive
cost management strategies.

Corresponding profits from hospital operations likewise increased by 24 percent – from P440.9 million in 2007 to P544.7 million. After-tax profits of P434.4 million were posted in 2008, compared to a loss of P410.8 million in the previous year, due to a one-time write-off on the sale of investment property.

All profitability measures, most already surpassing industry benchmarks, improved even further. Despite its capital expenditures in 2008, TMC reported a respectable gross profit margin of 38 percent, up from 35 percent in 2007.

Its earnings before income, tax, depreciation and amortization (EBITDA) margin approached 26 percent, while its after-tax profit margin exceeded 13 percent.

“We continued to invest in product innovation, quality improvement and institutional marketing while aggressively managing costs to protect and even enhance profits,” explained Margaret Bengzon, Head of TMC’ Strategic Services.

“We strengthened and streamlined our supply chain processes, generating annualized savings. We also availed of incentives offered by the Board of Investments to expand healthcare institutions and enjoy tax benefits,” she added.

For the first five months of 2009, TMC posted a 10 percent revenue growth, under P100 million despite a 3 percent decline in patient admissions.

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