Foundation Healthcare H1 profit drops 67.6% to S$1.2 million on higher operating expenses post-IPO

[SINGAPORE] Foundation Healthcare Holdings (FHH) on Thursday (Aug 13) posted a 67.6 per cent year-on-year decline in its net profit for its first half ended Jun 30, to S$1.2 million, from S$3.8 million.

This comes as initial public offering and operating expenses weighed down its H1 earnings, as the group’s acquisition-related and capital raising expenses rose by S$4.8 million or 827.2 per cent, to S$5.4 million in H1 FY2026, from S$600,000 in the corresponding year-ago period.

Its other operating expenses rose by 29.9 per cent year on year to S$9.9 million in H1, from S$7.6 million.

Its revenue stood at S$129.2 million for the period, up 20.2 per cent on the year from S$107.5 million.

In particular, the company’s specialist segment contributed S$125.7 million to its H1 revenue, due to “organic growth from existing practices and growth from acquired practices”, a statement said.

This is the group’s first release of its financial results since its IPO on the mainboard of the Singapore Exchange (SGX) on Jul 8.

Earnings per share for H1 came in at S$0.0019 per share, down from S$0.0057 in the year-ago period.

Lower margins

Justin Choi, chief financial officer of FHH, said during a media briefing that increased operating expenses were related to expansion of its clinic footprint, refurbishment of new and renovated medical centres, as well as hiring expenses.

Lower Ebitda margins were due to deliberate investments in operating expenses intended to increase future growth capacity, he said.

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“Margins should improve as operating leverage takes effect when revenue associated with these investments scale up,” he added.

Among the refurbished facilities are two ambulatory centres located in Novena and Orchard, which CEO Liaw Yit Ming said will now offer increased capacity and volume growth.

The ambulatory centre in Novena opened in February 2026, while the one in Orchard had paused operations from March to June earlier this year for renovations and refurbishment to increase its surgical capacity.

The company expects its reopening, as well as partnerships with major insurers, to drive stronger patient volumes to the centres.

“There is a proven need for ambulatory healthcare facilities, such as day surgical centres, to complement hospitals,” said Liaw.

He added that such centres are more scalable and cost effective to operate compared to hospitals.

“Many surgical procedures can be done safely at a lower cost in a day surgical centre,” he said.

Liaw added that FHH is exploring opportunities to expand its medical centre footprint.

Expansion plans

Meanwhile, employee compensation increased as a percentage of revenue as the company expanded its specialist network.

Choi noted that emerging specialists – who have been in private specialist practice for less than five years – made up a higher share of FHH’s revenue than the previous corresponding period.

The company noted that it is actively working towards acquiring established specialist practices in H2, while building up its emerging specialist network through a new joiner hiring programme.

Liaw said that FHH is expanding its footprint outside the country as it seeks to replicate its Singapore model internationally.

He noted that the company’s entrance into Malaysia is “well underway”, while developing its expansion into other regional markets including Hong Kong.

“We are in active discussions with insurers, specialists and government agencies (in Malaysia) to acquire or build new medical centres,” he added.

No dividend was declared by the group for H1 FY2026, a bourse filing indicated.

FHH said it would focus on expanding its specialist network through targeted hiring and selective acquisitions, with a growing cohort of emerging specialists already secured and further opportunities under evaluation, it said.

The counter ended Thursday 1.2 per cent or S$0.01 lower at S$0.805 before the release of the results.