SINGAPORE (May 13): Health Management International (HMI) announced that its 3Q19 earnings have dropped by 15% to RM13.4 million ($4.4 million), compared to RM15.9 million in 3Q18.
This brings 9M19 earnings to RM35.3 million, 22% lower than RM45.4 million in 9M18.
Turnover for the quarter increased by 8% to RM124.8 million from RM115.4 million a year ago.
Turnover from the group's healthcare business accounted for approximately RM9.5 million of the increase, mainly due to higher patient load and average bill sizes in its two hospitals – Mahkota Medical Centre (MMC) and Regency Specialist Hospital (RSH). The group's education business registered a RM0.2 million decrease in revenue due to lower student headcount.
As cost of sales increased by 12% y-o-y to RM82.7 million, gross profit for 3Q19 came in at RM42.1 million, 2% higher than RM41.4 million in the previous year.
Other gains increased by 26% y-o-y to RM2.3 million.
Distribution and marketing costs increased by 38% y-o-y to RM1.8 million, while administrative costs grew by 18% y-o-y to RM21.9 million, and finance costs was 99% higher at RM3.1 million.
During the quarter, the group recorded a loss from share of results of associates of RM100,000, which was absent in the corresponding year.
As at end-March, cash and cash equivalents stood at RM59.6 million.
The group’s total patient load increased 1.3% y-o-y to 116,202 for 3Q19. In addition, average outpatient bill sizes increased 5.3% y-o-y to RM233 and average inpatient bill sizes increased 4.9% y-o-y to RM8,191.
During the quarter, the group’s bed occupancy increased to 61.2% while the total number of operational beds remained stable at 437.
Chin Wei Jia, CEO of HMI says, “Our hospitals continue to see rising patient loads as we leverage on our strong brand equity and quality services to chart steady growth. Against the backdrop of rising healthcare demand in the region, our expansion initiatives at both hospitals are progressing well. In addition, we continue to focus our efforts on broadening our specialist offerings, developing our centres of excellence, as well as investing into technology and human capital across the group.”
Shares in HMI closed at 54 cents on Monday.
