• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Fat Tail Daily

Investment Ideas From the Edge of the Bell Curve

  • Menu
    • Commodities
      • Resources and Mining
      • Copper
      • Gold
      • Iron Ore
      • Lithium
      • Silver
      • Graphite
      • Rare Earths
    • Technology
      • AI
      • Bitcoin
      • Cryptocurrency
      • Energy
      • Financial Technology
      • Bio Technology
    • Market Analysis
      • Latest ASX News
      • Dividend Shares
      • ETFs
      • Stocks and Bonds
    • Macro
      • Australian Economy
      • Central Banks
      • World Markets
    • Small Caps
    • More
      • Investment Guides
      • Premium Research
      • Editors
      • About
      • Contact Us
  • Latest
  • Fat Tail Series
  • About Us
Macro Australian Economy

Ramsay Health Care: Trading Improves as COVID Cases Decline

Like 0

By Kiryll Prakapenka, Friday, 11 November 2022

Private hospital and healthcare company, Ramsay Health Care [ASX:RHC], saw trading conditions improve in 1Q23, ‘reflecting the decline in COVID cases in the community.’

Private hospital and healthcare company, Ramsay Health Care [ASX:RHC], saw trading conditions improve in 1Q23, ‘reflecting the decline in COVID cases in the community.’

RHC shares were up 5% late on Friday, trending higher along with most of the ASX, which was buoyed by a strong rally on Wall Street following better-than-expected CPI inflation data in the US.

RHC shares are down 20% in the past six months.

ASX:RHC Ramsay Health Care stock chart

Source: tradingview.com

Ramsay Health’s 1Q23 Business Update

The healthcare service operator has today alerted the public that as COVID cases declined in the quarter, business conditions improved along with profit.

Ramsay said the financial impact of COVID in Australia and the UK fell from $44 million in July to $5.9 million in September.

But while COVID-related costs waned, inflationary costs rose.

RHC said it is negotiating better terms with payors to ‘reflect higher staffing costs related to labour shortages and inflationary pressures more generally.’

Financial highlights

The group’s financial highlights to the end of September were provided as unaudited results:

  • Total revenue is up 6.7% YoY to $3,445.4 million.
  • EBITDA dropped by 2.3%, from $420.3 million to $410.6 million
  • EBIT declined 12.9% from $197.4 million to $171.9 million.
  • Profit before tax also declined 24.3% from $107.2 million to $81.1 million.
  • In the Asia Pacific region, revenue increased 3.6% from $1,372.7 million to $1,422.5 million, and EBITDA went up 1.3% from $196.0 million to $198.6 million.
  • Revenue also went up 5% in the UK, from $139.7 million to $146.7 million.

Ramsay’s 0utlook

While RHC reported a significant improvement post-pandemic, the company warned it expects continuing impacts from community cases and restrictions in the near term.

While the group has already invested around $2.7 billion over the past two fiscal years, the group intends to fast-track further investments in digital and data strategies.

RHC believes it is in a good position to harness ‘positive long-term dynamics’ in the health sector and anticipates normalised conditions for FY24:

‘Underlying earnings growth for the remainder of FY23 will benefit from the additional capacity created over the last few years combined with full year contributions from Elysium and recent acquisitions in Europe. The focus remains on driving the synergies, realising the growth opportunities and improving returns.’

‘The Age of Scarcity’ and a new resources boom?

High demand, rising prices, and supply woes exacerbated by the war in Ukraine have turned energy into a topic of great importance.

But the rising cost of energy forms part of a wider story our resident commodities specialist James Cooper thinks is unfolding right now.

James says he’s ‘convinced the gears are in motion for another multi-year boom in commodities’.

A boom where Australia (and ASX stocks) stands to benefit.

James has penned a mammoth report on the topic and invites you to attend his special event — a free online premier next Wednesday where you can see how this is to unfold…

Click here to book your spot, this event is not to be missed!

 

Regards,

Kiryll Prakapenka,
For The Daily Reckoning Australia

All advice is general advice and has not taken into account your personal circumstances.

Please seek independent financial advice regarding your own situation, or if in doubt about the suitability of an investment.

Kiryll Prakapenka

Kiryll’s Premium Subscriptions

Publication logo
Fat Tail Investment Research

Latest Articles

  • The first place to look thanks to the US/China truce
    By Callum Newman

    My colleague Greg Canavan, a true contrarian, is positioning in a spread of energy companies to take advantage of the very investor disinterest and lack of supply growth I just described. We know, too, that one of Warren Buffett’s last moves was to load up on American energy. Personally, I prefer something more durable and permanent…

  • The trade war is over. Tax cut chaos is next.
    By Nick Hubble

    Trump isn’t just imposing tariffs. He also wants to cut taxes. If the tariff tantrum gave us a taste for how he’ll go negotiate, hold on tight!

  • The Untold Tariff Story
    By Callum Newman

    The real tariff story isn't what you're reading in the headlines. It's not about short-term market volatility or quarterly earnings impacts. The true story – and the massive investment opportunity – is about the fundamental restructuring of American manufacturing that's now underway. Trump's tariffs are accelerating AI adoption in American industry. Today, I want to show you the companies that are emerging as the backbone of this transformation.

Primary Sidebar

Latest Articles

  • The first place to look thanks to the US/China truce
  • The trade war is over. Tax cut chaos is next.
  • The Untold Tariff Story
  • The Big Payday: Chasing Profits in Risky Places
  • China’s plan to pop the AI bubble and sink Mag7 for good

Footer

Fat Tail Daily Logo
YouTube
Facebook
x (formally twitter)
LinkedIn

About

Investment ideas from the edge of the bell curve.

Go beyond conventional investing strategies with unique ideas and actionable opportunities. Our expert editors deliver conviction-led insights to guide your financial journey.

Quick Links

Subscribe

About

FAQ

Terms and Conditions

Financial Services Guide

Privacy Policy

Get in Touch

Contact Us

Email: support@fattail.com.au

Phone: 1300 667 481

All advice is general in nature and has not taken into account your personal circumstances. Please seek independent financial advice regarding your own situation, or if in doubt about the suitability of an investment.

The value of any investment and the income derived from it can go down as well as up. Never invest more than you can afford to lose and keep in mind the ultimate risk is that you can lose whatever you’ve invested. While useful for detecting patterns, the past is not a guide to future performance. Some figures contained in our reports are forecasts and may not be a reliable indicator of future results. Any actual or potential gains in these reports may not include taxes, brokerage commissions, or associated fees.

Fat Tail Logo

Fat Tail Daily is brought to you by the team at Fat Tail Investment Research

Copyright © 2025 Fat Tail Daily | ACN: 117 765 009 / ABN: 33 117 765 009 / ASFL: 323 988