IHH Healthcare on Thursday (Nov 28) posted a net profit of RM534 million (S$161.5 million) for its third quarter ended Sep 30, 2024, nearly on a par with RM532 million the year before.
Earnings per share stood at 6.06 sen, relatively unchanged from 6.04 sen.
Earnings held steady despite revenue for the quarter slipping 3 per cent to RM5.6 billion from RM5.8 billion due to inflation.
An interim single tier cash dividend for the financial year ended Dec 31, 2024 of 4.5 sen per share was paid out on Oct 30, 2024.
IHH said it saw higher patient volumes and increased revenue from taking on more complex cases during Q3 across key markets including Singapore, Malaysia, Turkey, India and Greater China (including Hong Kong).
However, the group noted that its revenue was impacted by the relative movements of inflation rates upon the application of MFRS 129 – which requires financial statements of an entity whose functional currency is the currency of a hyperinflationary country to be restated into the measuring unit current at the end of the reporting period.
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Excluding MFRS 129, the group’s revenue would have grown by 10 per cent year on year for Q3 FY2024.
For the nine-month period, IHH’s net profit was down 13 per cent year on year to RM1.9 billion, against RM2.2 billion. Revenue was up 13 per cent to RM17.7 billion from RM15.6 billion.
Earnings per share for the nine-month period stood at 21.86 sen, slightly lower than 25.26 sen the year before.
Looking ahead, the group said it was “confident” of its trajectory as healthcare needs continue to grow both locally and around the region. As part of its strategic priorities, it aims to add close to 4,000 new beds in the next five years.
Group chief executive officer Prem Kumar Nair noted that the group has strengthened its position in key markets by acquiring Island Hospital in Penang and opening Fortis Hospital, Manesar in the National Capital Region of India.
These efforts have added a combined 1,000 beds, allowing the group to extend its offerings to “significantly” more patients, he said.
Overall, IHH expects sustained revenue growth fuelled by healthcare megatrends. It added that it will focus on driving profitability and sustaining healthy returns on equity, while maintaining “prudent capital management and mitigating inflationary and interest rates pressures”.
Shares of IHH closed at S$2.17 on Thursday, down S$0.01 or 0.5 per cent, before the results were announced.
