IHH Healthcare's Q1 net profit surges 37%

IHH's largest operating unit, Parkway Pantai, reported turnover rising 30 per cent to RM1.54 billion (S$520 million), driven partly by Mount Elizabeth Novena Hospital in Singapore.
IHH's largest operating unit, Parkway Pantai, reported turnover rising 30 per cent to RM1.54 billion (S$520 million), driven partly by Mount Elizabeth Novena Hospital in Singapore.ST PHOTO: DESMOND WEE

Rise comes on back of new acquisitions, growth at existing hospitals

Growth at hospitals across markets and new hospital acquisitions were some of the reasons behind strong first-quarter earnings for healthcare giant IHH Healthcare.

Net profit for the three months to March 31 surged 37 per cent to RM235.5 million (S$79.4 million), including one-off items, compared with the same period a year earlier.

Stripping out one-off items, first-quarter net profit rose 5 per cent to RM238.3 million, while revenue surged 24 per cent to RM2.48 billion.

The increase came on the back of "sustained organic growth at existing hospitals across all home markets and the continued ramp-up of newer hospitals", said the group in a statement yesterday.

It acquired Continental Hospitals in March last year and Global Hospitals last December in India, both of which contributed to its revenue in the first quarter. India is now one of its main markets besides Malaysia, Singapore and Turkey.

  • AT A GLANCE

  • NET PROFIT: RM235.5 million (+37%)

    REVENUE: RM2.48 billion (+24%)

IHH's largest operating unit, Parkway Pantai, reported turnover rising 30 per cent to RM1.54 billion.

This was driven by Mount Elizabeth Novena Hospital in Singapore, as well as the newly opened Gleneagles Kota Kinabalu Hospital and Gleneagles Medini Hospital in Malaysia, among other things.

Inpatient admissions at its Singapore hospitals grew 10.9 per cent to 18,094, while patient volumes at its Malaysia hospitals were up 9.6 per cent to 49,026. The group said the growth in both markets was driven by local patients.

Quarterly earnings per share was 2.9 sen, up from 2.78 sen a year earlier, excluding one-off items.

Net asset value per share was RM2.61 as of March 31, slightly down from the RM2.69 as of Dec 31 last year.

IHH chief executive Tan See Leng said in a statement: "We are pleased to continue delivering solid growth in the quarter, reflecting the strength of our diverse operations despite the challenging macroeconomic climate."

He added that the group will continue to look out for opportunities, such as its entry into Bulgaria.

IHH Healthcare shares closed flat at $2.25 yesterday.

A version of this article appeared in the print edition of The Straits Times on May 27, 2016, with the headline 'IHH Healthcare's Q1 net profit surges 37%'. Print Edition | Subscribe