Ramsay Health Care’s first-half result has exceeded expectations, reporting an underlying net profit after tax of $172 million, an 8.1 per cent increase. This figure surpasses the consensus estimate of $149 million, according to Morgans analyst Derek Jellinek. However, Jellinek noted that the 15 per cent beat was primarily due to lower tax rates and gains on non-controlling interests. Operating earnings before interest and taxes were only about 2 per cent above anticipated levels. Ramsay Health Care is a global healthcare company that operates hospitals and provides a range of healthcare services. The company has facilities across Australia, Europe, and Asia. Operationally, Australia stood out as the primary driver, with earnings before interest and taxes of $331 million, marking a 7.1 per cent increase. This growth was fuelled by increased admissions, higher acuity cases, and initial benefits from transformation initiatives. Jellinek stated that the result was positive at the operating level, showing a clear improvement in Australia and indicating that transformation initiatives are beginning to yield positive outcomes. Morgans anticipates a constructive share price response, while highlighting the sustainability of margin expansion outside Australia as a key issue in the medium term. Ramsay Health Care’s shares were last up 11.3 per cent.
