BUPA end of year results - revenue and profit growth in challenging market conditions
For more informaiton visitBupa: Full year statement for the year ended 31 December 2016
REVENUE AND PROFIT GROWTH IN CHALLENGING MARKET CONDITIONS
HIGHLIGHTS o Revenue £11.0bn up 4% at constant exchange rates (CER)1 (2015 FY: £10.6bn); up 12% at actual exchange rates (2015 FY: £9.8bn AER) o Underlying profit2 before taxation £700.7m up 10% at CER and 20% at AER; up 2% at CER and up 12% at AER when excluding the impact of the IFRIC 12 adjustment relating to our Spanish Public-Private Partnerships (PPPs) in 20153 o Statutory profit before taxation £522.9m, up 40% at AER (2015 FY: £374.3m) o Net cash generated from operations £891.0m, up 13% at AER (2015 FY: £788.1m) o Solvency II capital coverage ratio4 of 204% (2015 FY: 178%)
Evelyn Bourke, Group CEO of Bupa, commented:
“Our businesses performed solidly in challenging market conditions. We achieved good profit growth in our three largest Market Units – Australia and New Zealand, the UK, and Europe and Latin America – and, while performance within International Markets was impacted by a significant decline in profits in Bupa Global, the overall Group grew revenue 4% and underlying profit 10%, albeit up 2% when excluding the impact of the IFRIC 12 adjustment made in 2015.
“Over the year we made progress in reshaping our portfolio in the UK. In July, we exited the home healthcare market, selling our business to Celesio. In November, we announced the purchase of Oasis Dental Care5, which will make Bupa a major dental provider in the UK and significantly increase our high street presence across the country.
“Looking ahead, we expect conditions to continue to be challenging in our key markets and we are focused on delivering strong and sustainable performance, with an emphasis on providing high quality service for our customers in this digital age.”
Market Unit performance o Australia and New Zealand: revenue up 7%; underlying profit up 9%. o UK: revenue declined 3% due to disposal of Bupa Home Healthcare (BHH) in July; underlying profit up 7%. o Europe and Latin America: revenue up 10%; underlying profit up 63%; underlying profit up 10%6 excluding the impact of the IFRIC 12 adjustment relating to our Spanish PPPs in 2015. o International Markets: revenue up 1%7; underlying profit down 52% driven by Bupa Global.
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