KPJ Healthcare’s Q1 earnings fall 7.9% to RM39.1mil

KPJ's Pasir Gudang Specialist Hospital

KUALA LUMPUR: KPJ Healthcare Bhd’s net profit fell 7.9% to RM39.12mil in the first quarter ended March 31 (1Q19), has declared a dividend of 0.5 sen per share. 

KPJ said the ex-date for its dividend is on June 18 while payment will be on June 28.

The group’s revenue for the current quarter ended 1Q19, stood at RM868.1mil, up 5% as against RM822.9mil in the corresponding quarter of the preceding year.

The healthcare provider said its Ebitda (earnings before interest, tax, depreciation and amortisation) was higher at RM154.9mil during this quarter as compared to RM116.6mil in corresponding quarter, mainly contributed by the impact of MFRS 16 adoption.

Starting from  Jan 1, the group has adopted MFRS 16, which saw operating lease rental now being recognised as right-of-use assets and lease liabilities in the statements of financial position which resulted in no lease expense to be recognised and being replaced with depreciation and finance costs in the statements of comprehensive income. 

The profit before zakat and taxation  for the quarter ended March 31 was recorded at RM66.4mil, increase by 9% from RM60.9mil in 2018, in line with the increase in revenue.

KPJ said a 5% growth was reported in Malaysia segment from RM797.4mil as at 1Q18 to RM839.3mil as at 1Q19 mainly contributed by the increase in number of patient visits and surgeries especially for KPJ Rawang, KPJ Pasir Gudang and KPJ Johor. 

In addition, the newly-opened hospital, KPJ Perlis and KPJ Bandar Dato’ Onn are also contributing factors to the double-digit increment to the revenue of the period.

Ebitda for Malaysia has been noticeably increased from RM114.9mil in 1Q18 to RM151.1mil in 1Q19, mainly contributed by lease rental which has been excluded from the administrative expenses, as a result from the adoption of MFRS 16 in this quarter. 

It added that the lease rental amounted to RM20.5mil was deducted in arriving to the Ebitda in 1Q18.

PBZT has increased by 12% to RM69.6mil during this quarter from RM62.4mil last tear, in line with the increase in revenue for the period.

Revenue from Australia segment was reported at RM12.9mil, decreased by 13% as compared to revenue in the corresponding quarter of the preceding year which was reported at RM14.9mil.

Commenting on its prospects, KPJ said: “For the year 2019, the group acknowledged that rising cost in healthcare industry will continue to be the main challenge. With continuous monitoring over operational excellence and focus on revenue growth along with disciplined cost management, the group is confident to achieve its target and further its vision of becoming the preferred healthcare provider.”
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