Ramsay Health Care Signals Fall in Annual Profit From Continuing Operations

By David Winning

SYDNEY--Private hospital operator Ramsay Health Care said writedowns and impairment charges against some of its European businesses would weigh on its fiscal 2024 net profit.

Ramsay Health Care said it expects a net profit from continuing operations of between 265 million Australian dollars (US$172.5 million) and A$270 million in the 12 months through June. That suggests a lower result than the A$278.2 million profit achieved in the 2023 fiscal year.

Statutory profit is likely to be in a range of A$884 million to A$889 million as it includes the A$618 million gain on sale of the Ramsay Sime Darby venture, Ramsay said.

In Monday's regulatory filing, Ramsay signaled non-cash impairments and accelerated writedowns "against the book value of underperforming assets in both Ramsay Santé and the U.K. region" of A$24.5 million.

Still, Ramsay said it is benefiting from improving activity trends and labor productivity, while capital expenditure in fiscal 2024 was less than forecast at around A$740 million, driven by an unexpectedly low level of spending in Australia.

Ramsay is due to confirm its fiscal 2024 result and comment on the outlook for the current year on Aug. 30.

Write to David Winning at david.winning@wsj.com

(END) Dow Jones Newswires

August 04, 2024 19:16 ET (23:16 GMT)

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