When investors learn that a company has announced a 20 percent increase in its dividendThe head spins immediately. But when this happens while revenue grew only 1.8%, it raises the question worth exploring – how are payouts growing so much faster than the top line? For Raffles Medical Group (SGX:BSL), or RMG, the answer lies in a combination of growing profits, growing free cash flow, and a strong balance sheet. As investors, we want to know whether a dividend increase is a one-time gift or a lasting reward. RMG’s latest results for full year 2025 (FY25) provide some very reassuring answers.
Efficiency on top-line expansion
RMG’s core revenue was S$765.3 million, a slight increase on the previous year. However, as many experienced investors know, revenue is vanity while profit is discretion. Beneath that subdued top line, the group’s profitability improved significantly. Net profit rose 13.4% year-on-year to S$70.6 million, and operating profit rose 9.5% to S$90.4 million….
