KPJ post net profit of RM18.5mil in 4Q21

KUALA LUMPUR: KPJ Healthcare Bhd’s net profit fell 27% to RM18.46mil in the fourth quarter ended Dec 31, 2021, from RM26.28mil a year prior.

The healthcare group recorded total revenue of RM689.1mil in 4Q21, an increase of 11% compared to RM622.3mil in the previous corresponding quarter.

During the quarter under review, outpatient visits increased to 730,992 from 707,177, while inpatient visits increased to 71,007 from 57,722 in the previous corresponding quarter.

It recorded total earnings before interest, depreciation and amortisation (Ebitda) of RM138.9mil, up 14% increase from RM121.7mil in the previous corresponding quarter.

For the full financial year ended Dec 31, 2021 (FY21), KPJ’s net profit more than halved to RM51.03mil against RM110.44mil in FY20 while revenue rose 10% to RM2.62bil from RM2.39mil a year prior.

KPJ said the higher revenue was due to increased activities throughout the year, including greater collaboration with the public healthcare sector to treat Covid-19 patients, higher Covid-19 screening, laboratory testing, and vaccination services.

The group recorded total Ebitda of RM529.5mil in 2021, lower by 2% from RM538.9mil in 2020.

Its pretax profit fell 23% to RM115.6mil in 202 from RM150.8mil 2020, mainly due to the increase in materials cost as a result of complying with the Covid-19 standard operating procedure’s (SOP) requirement, usage of personal protective equipment (PPE) by our employees and compulsory requirement for RT-PCR test for all inpatients had resulted to higher operating costs during this Covid -19 pandemic.

In addition, the group made a reversal of provisions in 2020 that was not repeated in 2021.

On its prospects, KPJ said whilst the group continued to expand its operation, it is also anticipating that the challenges posed by the pandemic will continue in the year 2022.

“The group has identified key strategic focus areas for 2022 that will shape its ability to navigate from recovering to thriving in the post-pandemic ‘new normal’ and advance its journey in the industry.

“Our focus will continue to cover greater adoption of virtual health and other digital innovations, as well as public-private collaborations via decanting of non-Covid-19 cases in efforts to alleviate the strain on the public healthcare system,” it said.