IHH Healthcare reports earnings of RM493 million for 1QFY2022, up 31% y-o-y

Revenue in the same period was up 6% y-o-y to RM4.1 billion as the company saw growth in its key markets, with a rebound in domestic patient revenue, contribution from delivery of Covid-19 related services and a continued ramp-up of operations at Gleneagles Hong Kong Hospital (GHK).

The acquisitions of DDRC SRL Diagnostics Private Ltd (DDRC SRL) on April 5, 2021 and General Hospital Acibadem Bel Medic (Bel Medic) on July 20, 2021 also contributed.

EBITDA grew 4%, driven by higher revenue but partially offset by higher staff costs, operating expenses and lower government grants. This was compared to a higher base in the same period last year with a RM15.6 million gain on the disposal of an investment property.

The company noted that there may be short-term headwinds as it awaits the inflection from a full return of “business-as-usual”, with the expectation of rising staff costs and inflationary pressures including energy costs.

See also: IHH Healthcare’s 3QFY2024 patmi remains flat at RM534 mil

IHH Healthcare managing director and CEO Dr Kelvin Koh says the company is nimbly adapting to the new normal and are pursuing new growth opportunities. “One example is our laboratories segment, which we have accelerated from the onset of the pandemic. We see growth in its underlying core business and will work towards becoming a global laboratory service provider, backed by our deep clinical know-how and capabilities.

“As borders reopen and restrictions lift, we are seeing a firm recovery in our non-Covid-19 business as domestic and foreign patients return. In the short term, we may expect to see some headwinds with the melt-off of COVID-19-related revenues as well as from global inflationary pressures. However, we remain confident that our longer-term growth trajectory remains intact,” he added.

Shares in IHH closed on May 26 unchanged at $2.01.

Photo: The Edge Singapore