Healthcare group IHH reports robust first quarter earnings

SINGAPORE - Healthcare group IHH Healthcare Berhad (IHH) reported strong growth in its first quarter ended March 31.

Net profit rose by 8 per cent to RM171.5 million (S$64.2 million).

It attributed its growth in revenue and earnings before interest, tax, depreciation and amortisation (Ebitda) to a greater number of inpatients, higher average revenue per patient and the boosting of its operations in Turkey and Malaysia.

Revenue jumped 14 per cent to RM2 billion for the quarter compared with the same period last year.

The company's Ebitda also rose by 16 per cent to RM506 million, while profits after tax and minority interest soared 32 per cent to RM227.8 million.

Net asset value per share rose to RM2.43 compared to RM2.39 as at Dec 31.

On the cost side, IHH is expecting increased spending due to wage inflation and increased competition for skilled healthcare workers.

It also expects the implementation of the goods and services tax in Malaysia to drive up costs.

However, it plans to cushion the effects of higher costs by adjusting prices.

IHH chairman, Tan Sri Dato' Dr Abu Bakar bin Suleiman, said: "I remain confident that with our sterling track record and sound business strategy, we can continue to deliver superior care to patients while creating long-term, sustainable value for shareholders."