News: RHC UPDATE 1-Ramsay Health Care Q1 profit falls, eyes gradual recovery into 2024

(Adds more detail on results, context)

Nov 11 (Reuters) - Ramsay Health Care Ltd (RHC) , Australia's largest private hospital operator, on Friday posted a marginal drop in first-quarter net profit as the COVID-19 pandemic continued to disrupt its operations and weigh on costs.

The company, however, sees a "gradual recovery" through 2023 and 2024 as operating conditions normalise, and expects underlying earnings growth next year to benefit from acquisitions and capacity expansions carried out over the last few years.

"The outlook for the Group remains strong as the business is well placed to take advantage of the positive long-term dynamics driving the healthcare industry," the Sydney-based firm said.

Ramsay, which announced its first quarterly update since talks over a $13 bln buyout with a KKR-led consortium ceased in September, said net profit attributable was A$57.4 million ($38.04 million) in the three months ended Sept. 30, slightly down from A$58.1 million a year earlier.

In late September, a consortium led by private-equity giant KKR

withdrew

its A$20 billion bid for the hospital operator after talks hit a stalemate, killing Australia's biggest deal of the year.

Ramsay shares, which had jumped more than 24% when the offer was made on April 20, are currently trading at a 33% discount to KKR's

A$88 per share

offer price.

In Australia, COVID-19 disruptions were expected to have resulted in a hit of A$57.7 million in the quarter, marginally higher than last year, the hospital operator said.

The hospital operator said operating earnings of its French subsidiary Ramsay Generale de Sante GDSF.PA fell 16.4% in the latest period on lower contribution from COVID-related government revenue and cost support.

One of the major reasons why the buyout talks hit a stalemate was that KKR could not gain access to Ramsay Sante's accounts to carry out due diligence, according to Reuters' sources. ($1 = 1.5090 Australian dollars) (([email protected]; Twitter: https://twitter.com/sameer_manekar))