IHH Healthcare reports 31% YoY rise in net profit in 1Q

IHH Healthcare Bhd’s net profit rose 31.3% to RM493.26mil in the first quarter ended March 31 against RM375.62mil in the same corresponding period last year.

Revenue for the quarter improved to RM4.16bil from RM3.94bil a year earlier as the healthcare group saw growth in its key markets, with a rebound in domestic patient revenue, contribution from delivery of Covid-19 related-services and a continued ramp-up of operations at Gleneagles Hong Kong Hospital (GHK).

IHH, in a statement, said the acquisitions of DDRC SRL Diagnostics Private Limited on April 5, and General Hospital Acibadem Bel Medic (Bel Medic) on July 20, 2021, also contributed.

Its earnings before interest, tax, depreciation and amortisation (Ebitda) grew 4% to RM996.5mil driven by higher revenue but partially offset by higher staff costs, operating expenses and lower government grants.

This was compared to a higher base in the same period last year with a RM15.6mil gain on the disposal of an investment property, IHH said.

Managing director and chief executive officer Dr Kelvin Loh said its strong performance this quarter reflects the execution of its ‘Care. For Good.’ strategy as it seek to prioritise returns and drive capital efficient growth for its stakeholders.

“We are nimbly adapting to the new normal and are pursuing new growth opportunities for the group. One example is our laboratory segment, which we have accelerated from the onset of the pandemic. We see growth in its underlying core business and will work towards becoming a global laboratory service provider, backed by our deep clinical know-how and capabilities.

“As borders reopen and restrictions lift, we are seeing a firm recovery in our non-Covid business as domestic and foreign patients return. In the short term, we may expect to see some headwinds with the melt-off of Covid-19 related revenues as well as from global inflationary pressures. However, we remain confident that our longer-term growth trajectory remains intact,” Loh said. The Star