Raffles Medical Group has reported profit after tax (pat) of $12.4 million for the 3QFY2023 ended Sept 30, 67.4% lower from the exceptional result of $38.0 million in the corresponding period the year before.
9MFY2023 PAT fell by 25.6% y-o-y to $72.8 million.
Revenue for the 3QFY2023 fell by 24.6% y-o-y to $161.6 million while revenue for the 9MFY2023 fell by 14.7% y-o-y to $532.4 million.
According to the group, the discontinuation of Covid-19 activities has affected the profitability of its operations in Singapore while cost inflation also eroded its margins.
In China, the group has seen patient visits increase after the cessation of Covid-19 restrictions. Although revenue has improved, its hospitals in Shanghai and Chongqing are still in the developmental phase and incurring gestational costs.
The group says it has begun right-sizing and rationalising the China operations to achieve better operating efficiencies.
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In the 3QFY2023, Raffles Health Insurance (RHI), its health insurance arm, also registered higher claims.
As at Sept 30, cash and cash equivalents stood at $345.4 million while the group’s net cash position stood at $239.7 million.
Looking ahead, the group is staying cautious on the macro environment with the uncertain global economic situation combined with higher inflation and interest rates remaining a “substantive concern”.
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That said, barring unforeseen circumstances, the group is expected to remain profitable for the rest of the financial year.
“The group plans to grow and expand our patient base by offering integrated healthcare services solutions that are tailored to meet our clients’ needs. We are focused on growing in a value accretive manner and improving the operational leverage of our existing businesses,” says Dr Loo Choon Yong, executive chairman of the group.
Shares in Raffles Medical Group BSL closed flat at $1.20 on Nov 3.
