IHH Healthcare net profit down 45% in 1Q

KUALA LUMPUR: IHH Healthcare Bhd's net profit for the first quarter ended March 31, 2024, (1Q 2024) decreased to RM767.97 million from RM1.39 billion in the same period last year, a drop of about 45 per cent.

The integrated healthcare provider said in a Bursa Malaysia filing today that its 1Q 2024 operating income decreased from a high base in 1Q 2023.

"Staff costs increased as the group expands its capacity to cater for higher demand for its services.

"Depreciation, amortisation and impairment expense increased when the property, plant and equipment, and assets of the group’s subsidiaries in Turkiye increased with higher inflation rates during the period,” it said.

Meanwhile, revenue for the quarter grew by about 16 per cent to RM5.96 billion from RM5.14 billion, driven by sustained demand for quality healthcare services.

Group chief executive officer Dr Prem Kumar Nair said the company will continue to focus on providing patients with cutting edge care.

"For instance, the recent official opening of the region’s first private proton therapy care centre in Singapore further reinforces our position as Asia’s leading centre of excellence in comprehensive cancer care,” he said in a statement today.

"Overall, we expect favourable tailwinds from secular trends in the countries we operate in, which will underpin longer-term growth.” Prem said,

"As we push on with our growth strategy aligned with our framework, we are confident that we can generate sustained and sustainable value for all,” he added.

IHH said it is confident of its growth trajectory and will anchor on its ACE framework to deliver against its five strategic priorities, notably aiming to add close to 4,000 new beds in the next five years.

"Overall, the group expects continued revenue growth fuelled by healthcare megatrends, and will focus on driving profitability and sustaining healthy return on equity while maintaining prudent capital management and mitigating inflationary and interest rates pressures,” it added. - Bernama

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