KUALA LUMPUR: KPJ Healthcare Bhd posted a steep drop in quarterly earnings as patients postponed hospital visits due to the Covid-19 pandemic.
Net profit in the last quarter ended Dec 31 tumbled 70% to RM25.3mil, as revenue fell 18% to RM586.8mil.
For the full year, net profit was almost halved to RM110mil on revenue of RM2.4bil.
"The Group expects the business environment to stay challenging for most of 2021," it said in a filing with Bursa Malaysia today.
KPJ said bed occupancy rate at its hospitals decreased 25% in fourth quarter to 43% compared with 68% recorded in same quarter in 2019.
"This is evidenced by the lower patient numbers in the current quarter with 764,899 patients, falling from 827,451 patients in the same quarter in 2019," it said.
The reduction in hospital activity has affected the Group’s revenue as well as the EBITDA and profit before tax for the last three months in 2020.
The group results were also affected by recognition of impairment loss on the investment of quoted and unquoted shares, lower gain on fair value of investment properties and impairment loss on property, plant and equipment.
The company also recorded a 90% decline in share of profit, mainly contributed by Al-‘Aqar Healthcare REIT.
"Looking ahead into 2021, the Group will continue to take advantage of Governments’ incentives in order to mitigate the adverse effects of the pandemic," it said.
"Specifically under the Permai assistance package announced by the Government in January 2021, the Group has offered to collaborate with the government hospitals to treat non-COVID-19 patients in efforts to alleviate the strain on the public healthcare system," it added.