Alliance Healthcare Group MIJ has reported earnings of $1.1 million for 1HFY2023 ended Dec 31, 2023, a 44.4% decrease compared to its earnings of 1.9 million for the corresponding period last year.
Earnings per share for 1HFY2024 came to 0.52 cents, down from 0.93 cents in 1HFY2023.
For the half-year period, revenue was up 16.4% y-o-y to $33.7 million, mainly attributable to an increase in sales generated by the company’s managed healthcare solutions, pharmaceutical services, mobile and digital health services and specialist care services segments.
These were partially offset by a decrease 6.6% y-o-y in revenue from the GP clinic services segment to $8.5 million in 1HFY2024 from fewer patient visits in the absence of extra government subsidies at Public Health Preparedness Clinics (PHPCs) and polyclinics for the testing and treatment of all respiratory infections with effect from April 1, 2023.
The cost of consumables and medical supplies used increased by 15.5% y-o-y to $10.5 million in 1HFY2024, mainly due to an increase of consumables and medical supplies sold or used for the pharmaceutical services, corporate clinics of the managed healthcare segment and the specialist care service business segment in line with the increase in their revenue.
Employee benefits expenses also increased by approximately 22.0% y-o-y to $18.1 million in the half-year period. This was mainly due to an increase in salaries and defined contribution plan of employees with the increased headcount of employees and doctors and business activities in the managed healthcare solutions, digital health services and specialist care services segments.
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The company also incurred additional staffing and related costs for the new clinics which commenced operations on and after January 2023, and its medical centre and medical aesthetic clinic incorporated in 1HFY2024.
In its outlook, Alliance Healthcare says it is continuing to face inflation-led increases in drug and staffing costs like the rest of the industry, which may not be passed on entirely to customers. As such, the company says it is working towards increasing productivity and digitalisation of processes to mitigate the increasing costs.
The company also notes that healthcare trends in Singapore indicate a growing emphasis on community-based care and cost containment, which could provide opportunities such as continuing care services for its primary care clinics.
Shares in Alliance Healthcare closed unchanged at 15.1 cents on Feb 13.
