Q2 2026 Burjeel Holdings PLC Earnings Call Transcript
Key Points
- Burjeel Holdings PLC (ADX:BURJEEL) reported a 4.4% increase in H1 revenue and a 34.6% increase in EBITDA (excluding one-off items), with core net profit nearly doubling, demonstrating strong operational leverage and margin expansion.
- Patient volumes accelerated in Q2, with outpatient visits up 12.5% and inpatient admissions up 8.4%, driven by growth in high-acuity specialties like oncology and cardiology, and a recovery in elective procedures.
- The company successfully completed a USD500 million sukuk issuance, which was 3.2 times oversubscribed and 61% allocated to international investors, extending its debt maturity profile to 2031 and providing long-term funding flexibility.
- Burjeel Medical City achieved a record EBITDA margin of 26.3%, and the group's free cash flow increased by 37% year-on-year to AED356 million, with conversion improving to 72%.
- Strategic initiatives are advancing, including a partnership with Oracle Health for an AI-enabled EMR system, a collaboration with Roswell Park for oncology care, and the opening of new facilities in Dubai, positioning the company for future growth.
- The company maintained disciplined cost management, with employee costs as a percentage of revenue declining by 0.4% in Q2 despite adding 350 employees, and inventory costs down 6.8% year-on-year.
- Burjeel Holdings PLC (ADX:BURJEEL) incurred AED25 million in non-recurring costs related to the exit from the LIJAM partnership in Saudi Arabia, as the business model was not well received in the market.
- Accounts receivable and DSO remain elevated, with the CEO acknowledging delays from major insurer Daman and a growing trend of higher aging brackets, though management expects improvements within a quarter.
- The new USD500 million sukuk carries a 7% coupon, which is higher than the previous term loan facilities, potentially increasing finance costs despite the strategic benefits of longer-term funding.
- The company is relocating Burjeel Hospital for Advanced Surgery in Dubai due to access issues and an aging building, which involves operational disruption and reallocation of resources.
- Other overhead expenses as a share of revenue increased by 0.8% in H1, reflecting continued investment in digital infrastructure and AI integration, which could pressure margins in the near term.
- The group's bed occupancy ratio stands at 69%, indicating significant unused capacity that, while a growth opportunity, also highlights the ongoing ramp-up costs of recently opened facilities.
Hello, ladies and gentlemen, and welcome to Brujeel Holding second quarter and first half 2026 earnings conference call.
Today's call will be hosted by Brujeel Holding Chief Executive Officer, Dr. Shamsheer Vayalil and Chief Financial Officer, Mr. Muhammed Shihabuddin, who will provide an overview of the group's financial and operational performance, followed by a Q&A session. Please refer to the disclaimer on second slide for important information regarding forward-looking statements and the use of historical data.
I will now hand the call over to Dr. Shamsheer. Please go ahead, sir.
Good evening, everyone, and thank you for joining us today.
I would like to begin by recognizing our extraordinary team of more than 14,000 healthcare professionals. During the first half of the year, they cared for over 3.7 million patients across our network. Their dedication, compassion, and commitment to clinical excellence remain the foundation of everything we achieve. Turning to our
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