Raffles Medical Group posted a net profit of S$29 million for its first half ended Jun 30, down 9.6 per cent from S$32.1 million in the same period a year prior.
The healthcare provider’s hospital services division continues to record earnings growth, with revenue of S$170.2 million and an 11 per cent increase in profit to S$19.7 million.
Overall revenue decreased 6.7 per cent year on year to S$353.2 million from S$378.4 million. Its healthcare services division reported a 16 per cent decline in revenue to S$119.5 million and a profit of S$15.6 million, mainly due to lower occupancy at transitional care facilities.
In the China market, revenue increased 13 per cent to 184.8 million yuan (US$27.2 million) in H1 FY2026 from 163.6 million yuan in H1 FY2025.
Prior cost-optimisation initiatives also contributed to improved financial performance. They registered revenue of S$170.2 million and an 11 per cent increase in profit to S$19.7 million, driven by improved operational efficiency and cost management across hospitals in Singapore and China.
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Raffles Health Insurance revenue stood at S$88.5 million and incurred an operating loss of S$1.1 million, narrowing by 64.3 per cent from S$3.1 million in the year prior. This was due to better claims experience, prudent claims adjudication and effective cost management.
The demand for quality healthcare services is expected to remain resilient.
Despite the global economic outlook remaining uncertain, the group remains committed to strengthening its regional healthcare network by broadening its range of clinical services, enhancing specialist capabilities and expanding access to quality healthcare across the Asian cities in which it operates.
The group will also continue to evaluate and adopt appropriate technologies, including artificial intelligence, to improve operational efficiency, enhance service excellence and support the delivery of safe, high-quality healthcare services.
Based on current conditions and barring unforeseen circumstances, the board expects the medical group to remain profitable in FY2026. Cash and cash equivalents stood at S$262.3 million as at Jun 30, providing flexibility to support existing operations and pursue disciplined growth opportunities.
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Earnings per share for the period stood at S$0.0158, down from S$0.0173 in the previous corresponding period.
No interim dividend was declared by the mainboard-listed group.
Operating cash flow generated by the group stood at S$64.6 million in H1 FY2026.
Dividends totalling S$55.2 million were distributed, and the group fully repaid bank loans amounting to S$51.1 million.
Shares of Raffles Medical fell 0.5 per cent to close S$0.005 lower at S$0.95 on Friday.