By David Winning

SYDNEY--Ramsay Health Care Ltd. reported a 58% rise in annual profit, but faces fresh threats to its recovery after a worsening Covid-19 outbreak in Sydney forced the cessation of non-urgent surgery at some hospitals.

Ramsay reported a net profit of 449.0 million Australian dollars (US$327 million) for the 12 months through June, up from A$284.0 million a year earlier. Earnings before interest and tax--or Ebit--improved by 29% to A$1.13 billion.

Ramsay, which has more than 500 hospitals and clinics in 11 countries, declared a final dividend of A$1.03 a share, bringing the annual payout to A$1.515 a share.

Ramsay's global footprint means its recovery is happening at different speeds depending on restrictions to counter the spread of coronavirus in each country where it has operations.

In Australia, Ramsay had experienced strong surgical volumes, with a more gradual pick up in non-surgical cases. Still, snap lockdowns during the past year continued to cause disruptions, while Ramsay has continued to shoulder a higher cost burden than before the pandemic.

Managing Director Craig McNally said Ramsay's fiscal 2022 results would be largely dictated by the effectiveness of global vaccination programs in reducing the number and severity of Covid cases around the world. Measures of success include a reduction in Covid hospitalization rates and the ability of the private hospital sector to operate without capacity restrictions, he said.

In Australia, Ramsay said its result for the six months through December, 2021, would be hurt by reduced activity levels in New South Wales, Queensland and Victoria states where lockdowns have been introduced. Those lockdowns cut Ebit in July by around A$13 million.

"Due to the introduction of surgical restrictions on August 23 at seven of Ramsay's hospitals in Greater Sydney the total Ebit impact in fiscal 2022 is forecast to be significantly more material and will depend on the duration of the restrictions," Ramsay said.

As a reference, Ramsay said restrictions on elective surgeries in Victoria that lasted around 90 days in 2020 cost the company around A$70 million in Ebit.

"Ramsay's business in New South Wales is approximately twice the size of Victoria," the company said.

Write to David Winning at david.winning@wsj.com

(END) Dow Jones Newswires

08-25-21 1859ET