KUALA LUMPUR: IHH Healthcare Bhd fourth-quarter net profit plunged 92% to RM40.6 million, from RM509.4 million due to foreign exchange losses and higher finance costs as additional loans were taken for the Fortis acquisition, working capital and swapping of Acibadem’s non-Lira loans to Lira loans upon refinancing and the adoption of MFRS 16 Leases.
Revenue was 21% higher at RM3.8 billion, from RM3.2 billion previously on sustained organic growth at existing operations and contributions from Gleneagles Hong Kong Hospital and Acibadem Altunizade Hospital, both opened in March 2017.
Amanjaya Specialist Centre and Fortis Healthcare, acquired in October 2018 and November 2018 respectively, also contributed to the higher revenue, the group stated in its Bursa filing.
IHH declared a first and final dividend of 4 sen per share for FY19 to be paid on April 30, 2020.
For FY19, IHH’s net profit fell 12.1% to RM551. 5 million, from RM627.7 million due to a RM200 million impairment loss from Global Hospitals which was acquired in 2015.
Revenue was 29.4% higher at 14.9 billion from RM11.5 billion previously.
The group’s balance sheet remained strong as at end-December 2019, with net cash generated from operating activities for the twelve months of RM2.4 billion and an overall cash balance of RM4.7 billion.
Net gearing edged up to 0.15 times, from 0.10 times in FY18 on strategic investments including Fortis in India.
Looking ahead, IHH managing director and CEO, Dr Kelvin Loh said the group will pursue a geographical cluster strategy for growth across its network to achieve greater economies of scale while delivering better patient services.
That said, Loh acknowledged the Covid-19 outbreak to have an impact on the global economy including markets where IHH operates in as medical tourism slows and patients delay non-emergency treatments.
