NMC Health reported that operations during H2-17 have continued to perform in line with expectations.
Consequently, the Company remains comfortable with the full-year guidance provided for FY17, which was reiterated during the H1-17 results conference call.
NMC also maintains a positive outlook for FY18, supported by improving efficiencies at existing facilities, as well as new growth avenues available to the company both within and outside UAE.
In order to properly capitalise on new growth opportunities, NMC is updating the growth strategy framework outlined in 2015.
NMC's strategy encompasses three distinct phases: Capacity growth, Capabilities focus and Geographic expansion.
While maintaining a firm focus on these three key tenets, NMC's updated strategy is aimed at enhancing the depth and breadth of our existing infrastructure.
The augmented growth strategy entails:
1) Addition of new verticals: NMC intends to add new healthcare verticals, focusing on highly underserved segments in the UAE, as well as the wider GCC. Furthermore, the Company continues to develop its underlying Centers of Excellence, with the potential for some to be upgraded to new verticals in the medium term.
2) Targeting wider emerging markets: After successfully growing its geographic footprint outside the UAE, NMC is now expanding its target market focus from the GCC to wider emerging markets for the healthcare business. The Distribution business will continue to be focused on the UAE.
3) Fertility to be developed as a global business: NMC's fertility business remains the only exception within the healthcare segment, as it will continue to be developed globally.
Given the nascent stage of the fertility sector around the world, both developed and emerging markets offer substantial growth opportunities. As the world's second largest player in the fragmented IVF market, NMC's strategy of developing an institutionalized business makes it a prime candidate to become a global consolidator.
4) Rapid adoption and deployment of technological innovation: NMC aims to embrace technological disruption instead of becoming disrupted by it. A number of innovative projects are already under way that will 1) add new services (which were not achievable previously without new technology), 2) improve patient experience and 3) improve operational efficiencies. NMC is developing a robust innovation structure and will not rely on acquisitions alone.
Chief executive officer Prasanth Manghat commented: "Having made considerable progress on all the goals we set for ourselves in 2015, our updated strategy lays out a clear roadmap for continued growth.
"We successfully enhanced the level of complexities offered at NMC's facilities through both organic and inorganic expansion, established a firm foothold in Saudi Arabia and the broader GCC and continue to establish Centers of Excellence in key specialties within existing hospitals.
"As our business grows, we are looking to add complexities in the form of new verticals, enter exciting new markets and deeply integrate technology to expand the very boundaries of the healthcare sector."