01 September 2014
Ryman Healthcare has been named in the top 10 best performing healthcare companies in the world in a prestigious new report.
The 2014 Value Creators Report rankings, in a report by the Boston Consulting Group, were compiled after researching shareholder returns at 1,620 global companies across 28 sectors over the five years from 2009 to 2013.
Ryman was ranked eighth in the world’s healthcare sector over that period, with an average annual shareholder return of 45.5 per cent. Ryman was the only Kiwi business to make the rankings, and only two Australian companies made the list.
Ryman’s total shareholder returns over that period were just short of the 46.7 per cent return reported by Apple, widely regarded as one of the world’s best companies.
Ryman Healthcare managing director Simon Challies said it was great recognition of how the company had performed.
“I think it recognises that we came through the GFC in good shape – those were tough years. We had a strong balance sheet, a conservative debt position and we kept investing in growth throughout those years while others pulled back.
“It is proof that our model of self-funding our growth and consistently re-investing 50 per cent of our profits creates great shareholder returns.
“We’re absolutely delighted to be on this list, and to be in such great company.’’
Mr Challies said the other significant factor to note was that Ryman achieved the growth focusing solely on its home market in New Zealand.
This week Ryman officially opens its first retirement village in Melbourne, where the company sees great prospects for growth.
“The Australian market is five times larger than New Zealand and we’ve been very successful in our first venture in Victoria. We think there’s plenty more room for growth in total shareholder returns.’’
The Christchurch company has achieved underlying annual profit growth of 22 per cent since 2002, making it one of New Zealand’s best performing companies.
Transport and logistics operator Qube and Fortescue Metals were the only Australian companies to make the rankings.
The 2014 Value Creators rankings are based on an analysis of TSR (total shareholder returns) at 1,620 global companies for the five-year period from 2009 to 2013.
To arrive at this sample, BCG began with TSR data for nearly 10,000 companies provided by Thomson Reuters.
Ryman is listed on the NZX and is included in global FTSE and MSCI indices.