Private hospital operator Ramsay Health Care (ASX:RHC) has warned that write-downs and impairment charges against some of its European businesses will weaken its underlying 2023-24 results compared to the previous year.
However, the profit from the sale of its Sime Darby venture will significantly boost statutory profit.
Ramsay expects a net profit from continuing operations of between $265 million and $270 million in the year to June. This is lower than the A$278.2 million profit reported for the 2022-23 year.
Statutory profit is likely to be between $884 million and $889 million, including the $618 million gain on the sale of the Ramsay Sime Darby venture.
In Monday’s regulatory filing, Ramsay announced non-cash impairments and accelerated write-downs of $24.5 million against the book value of underperforming assets in both Ramsay Santé and the UK region.
Ramsay did, however, say it is benefiting from improving activity and labor productivity, while capital expenditure in 2023-24 was lower than forecast at around $740 million due to unexpectedly low spending in Australia.
Ramsay is due to confirm its 2023-24 results on August 30.