IHH Healthcare reports robust third quarter results
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).