RAMSAY Health Care (ASX: RHC) shares were given a tonic today as the company reported a 16.8 per cent surge in net profit to $481.4 million.
The latest result was aided by a suite of acquisitions and expansions across the private hospital operator's international portfolio.
This led to an 11.6 per cent increase in EBIT (earnings before interest and tax) $897 million from an 18.1 per cent increase in group revenue to $8.7 billion.
The Sydney-based company's shares hit a 52-week high of $81.14 earlier today on the profit news.
RHC managing director Christopher Rex says the results are a reflection of excellent performance in each market, both nationally and overseas, with all segments performing at or above expectations in FY16.
"Solid volume growth, ongoing efficiencies, strategic acquisitions and further investment in our facilities continue to underpin our strong financial performance," he says.
Rex says the company has developed a long-term plan to build on its existing services including the operation of 200 hospital pharmacies, noting a growing need for health services worldwide.
"All regions are experiencing an ageing and growing population and with that comes a greater demand for healthcare," he says.
"We continue to invest in our facilities and our technology to ensure that we can attract the best specialists and meet the growing needs of a population with an increasing chronic disease burden.
"Drawing upon the experience we have gained in the operation of our 200 hospital pharmacies across the world we have commenced a strategic plan to extend our services beyond the hospital walls."
This year alone RHC opened more than 500 beds and 26 operating theatres across its network.
In Australia, the company completed more than $255 million in developments including major projects at Perth's Hollywood Private Hospital, Cairns Private Hospital and the Lake Macquarie Private Hospital.
The board also approved a further $200 million in developments, including the $71 million relocation and expansion of the 43-year-old Northside Mental Health Clinic in Sydney.
RHC has announced a fully-franked final dividend of 72c per share, with the payment date set for September 29.
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