Thomson Medical Group A50 has reported earnings of $2.0 million for the 1HFY2024 ended Dec 31, 2023, a 91.1% slump from its earnings of $22.8 million in the same period the year before.
For the half-year period, earnings per share (EPS) also declined to 0.8 cents from 8.6 cents in 1HFY2023 on a fully diluted basis.
Group revenue in 1HFY2024 decreased by 8.6% y-o-y to $168.1 million as revenue from Singapore decreased by 18.2% and revenue from Malaysia grew by 20.8%.
The decrease in revenue from Singapore was mainly attributed to the completion of project-related services, such as managing vaccination centres and the Transitional Care Facilities (TCFs), and partially offset by the increasing revenue intensity in Singapore.
Meanwhile, increased operating capacity at Thomson Hospital Kota Damansara (THKD) contributed to the increased revenue from Malaysia.
Thomson Medical’s 1HFY2024 ebitda decreased by 30.8% from $55.5 million to $38.4 million mainly due to the lower revenue and the one-off transaction costs and foreign exchange loss incurred in relation to the acquisition of Far East Medical Vietnam (FEMVN).
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Excluding the one-off transaction costs and foreign exchange loss,adjusted ebitda would have come to $44.2 million.
While other income was 30.3% higher y-o-y at $3.0 million in 1HFY2024 from a larger government grant received under the Jobs Growth Incentive scheme and sponsorship income in Singapore, other operating expenses also increased 10.9% y-o-y to $42.8 million for the period.
The increase in other operating expenses was mainly due to transaction costs and foreign exchange loss incurred in relation to the acquisition of FEMVN.
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Staff costs during 1HFY2024 were 4.8% lower y-o-y due to a decreased headcount in relation to managing vaccination centres and TCFs, and partially offset by the increase in headcounts in Malaysia which resulted from the increased operating capacity at THKD.
Results from operating activities decreased by 39.3% y-o-y to $27.4 million.
As at Dec 31, 2023, cash and cash equivalents stood at $261.1 million.
No dividend has been declared for the period.
“With the recent completion of the acquisition of FEMVN, Thomson Medical Group now has a stronghold in each of South-East Asia’s most important healthcare markets. We will deepen our reach within each market and also continue to look at the right high-value partnerships and acquisitions that align with our strategy across the region,” says executive vice-chairman Kiat Lim.
“Across Singapore and Malaysia, we will continue to build our leadership in fertility and reproductive science, creating centres of excellence in the region. At the same time, the breadth of medical specialisms in our Vietnam and Malaysia operations give us an edge in creating integrated specialist offerings so that we continue to provide innovative healthcare solutions to raise the bar in Southeast Asia,” adds group CEO Dr Melvin Heng.
Shares in Thomson Medical closed 0.1 cents higher or 2% up at 5.1 cents on Feb 7.
