IHH records higher net income in 3Q21

by SHAFIQQUL ALIFF / pic by MUHD AMIN NAHARUL

IHH Healthcare Bhd’s net profit increased to RM550 million in the third quarter ended Sept 30, 2021 (3Q21), from RM309.95 million posted in 3Q20, mainly driven by returning patient to hospitals for treatments, despite some disruptions and movement controls from resurging waves of Covid-19 outbreak 

Revenue jumped 26% to RM4.44 billion from RM3.52 billion previously, as the group saw growth across all the countries it operated, IHH said in a filing to Bursa Malaysia yesterday. 

IHH’s Ebitda also grew 32% to RM1.1 billion, driven by higher revenue and valuation gains on investment properties, offset by higher staff costs, higher other operating expenses and lower government grant income recorded. 

It said the increase in staff costs was mainly due to the hire of contract employees for Covid-19 related services rendered, higher doctors’ salaries for certain groups of doctors whose salaries vary with revenue or services rendered, and the provision for market and appreciation bonus for staff. 

MD and CEO Dr Kelvin Loh said Gleneagles Hong Kong Hospital delivered a positive Ebitda in 3Q21, while Turkey and India operations have recovered fully and are geared for continued expansion. 

“Our growth from here will be driven both organically and inorganically. We are also making innovation investments as part of our digital transformation roadmap to seize disruptive opportunities that will give patients better, faster and affordable care. 

“As we emerge from the pandemic, IHH will not lose sight of our purpose to touch lives and transform care, keeping our people and patients safe,” he added. 

On the outlook, IHH said it expects revenue from Covid-19 services to gradually decrease, with operations returning to normalcy, while staff costs to rise as it strengthens clinical talent across its hospital services network with a strong return of core non-Covid business. 

“The group will continue to maintain cost discipline and implement active cash management, and it is confident that its longer-term growth trajectory remains intact. 

“It remains disciplined in delivering its strategy, which is centred on becoming the world’s most trusted healthcare services provider,” it said.