IHH Health­care re­ports ro­bust third quar­ter re­sults

The Sun (Malaysia) - - SUNBIZ -

PETALING JAYA: IHH Health­care Bhd saw its net profit in the third quar­ter ended Sept 30, 2016 (Q3FY16) rise 46% to RM173.3 mil­lion, from RM118.5 mil­lion in Q3FY15, af­ter for­eign ex­change losses on its sub­sidiary Aciba­dem Hold­ings’ non-Turk­ish lira bor­row­ings nar­rowed sig­nif­i­cantly.

Rev­enue in­creased 18% to RM2.44 bil­lion, com­pared with RM2.06 bil­lion in the pre­vi­ous cor­re­spond­ing quar­ter, on the back of sus­tained or­ganic growth at ex­ist­ing hos­pi­tals and con­tri­bu­tion from new hos­pi­tals.

In a state­ment yes­ter­day, the global health­care provider said its newly ac­quired as­sets, namely Con­ti­nen­tal and Global Hos­pi­tals in In­dia, and Tokuda Group and City Clinic Group in Bul­garia, also con­trib­uted to the group’s rev­enue growth.

For the nine months pe­riod, its net profit was up 26% to RM654.86 mil­lion from RM518.08 mil­lion a year ago, while rev­enue ex­panded al­most 20% to RM7.39 bil­lion com­pared with RM6.16 bil­lion pre­vi­ously.

The group’s earn­ings be­fore in­ter­est, tax, de­pre­ci­a­tion, amor­ti­sa­tion (ebitda), ex­change dif­fer­ences and other non op­er­a­tional items grew 15% to RM546.3 mil­lion on the strong rev­enue per­for­mance.

“This was off­set by start-up costs from new hos­pi­tals, higher op­er­at­ing and staff costs, as well as pre-open­ing ex­penses in­curred for Gle­nea­gles Hong Kong, slated to open in the first half of 2017,” it added.

As at end of Septem­ber 2016, IHH holds RM2.1 bil­lion in cash, with a net gearing of 0.21 times.

“Our sus­tained growth per­for­mance re­flects our fo­cus on ex­tract­ing op­er­at­ing lever­age from ex­ist­ing op­er­a­tions, in­te­grat­ing newly ac­quired as­sets and re­bal­anc­ing our port­fo­lio to op­ti­mise re­turns,” its man­ag­ing di­rec­tor and CEO Dr Tan See Leng said.

“We also con­tinue to pave the way for long-term growth, and are ex­cited about our strate­gic part­ner­ship with Taikang to ac­cel­er­ate our ex­pan­sion into main­land China as well as the ramp­ing up of our project pipe­line, in­clud­ing the open­ing of Gle­nea­gles Hong Kong next year,” he added.

Pre­vi­ously the group an­nounced a strate­gic part­ner­ship with a renowned lead­ing in­sur­ance and fi­nan­cial group in China Taikang In­sur­ance Group (Taikang).

Un­der the agree­ment, Taikang will take up a 29.9% eq­uity stake in IHH’s sub­sidiary, PCH Hold­ing Ltd, the hold­ing com­pany for IHH’s main­land China port­fo­lio of pri­mary care clin­ics and green­field hos­pi­tal projects, for about 1.1 bil­lion yuan (RM689.6 mil­lion).

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