MALAYSIAN hospital group IHH Healthcare : Q0F 0% reported a 54 per cent slide in its net profit for the third quarter ended Sep 30. This was due to the absence of exceptional items recognised in Q3 2021, including an increase in deferred tax assets of RM248.2 million (S$75.6 million), as well as foreign exchange losses and the effect of restating financial statements, according to a reporting standards framework in hyperinflationary Turkey.

Net profit for the quarter stands at RM251.8 million, from RM550 million in the same period last year, the group announced in a bourse filing on Tuesday (Nov 29).

For the first nine months of the year, net profit came in at RM1.36 billion, a 4 per cent year-on-year drop from RM1.41 billion.

Revenue for Q3 grew by 3 per cent to RM4.6 billion, from RM4.4 billion in the previous corresponding period.

This brings revenue for the first nine months to RM13.1 billion, or 4 per cent higher year on year from RM12.7 billion.

Earnings per share for Q3 2022 fell to 2.78 sen, from 6.01 sen in Q3 2021. It now stands at 14.82 sen for the first nine months of the year, versus 15.3 sen in the year-ago period.

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The group said revenue growth was mainly due to the strong recovery from core non-Covid-19 revenues as both local and foreign patients returned to seek treatment at its hospitals. However, these were partially offset by lower contributions from Covid-19-related services rendered in Q3 2022, as well as the disposal of Continental Hospitals in India on Dec 14, 2021 and a partial lockdown in China.

The weakening lira also eroded the revenue and earnings growth of its operations in Turkey.

The group expects non-Covid business to grow with improvements in patient volume and bed occupancy rates. It said foreign patient volume has recovered close to pre-pandemic levels, mitigating the effects of lower revenues from Covid-19-related services, which has largely dissipated.

IHH Healthcare managing director and chief executive officer Kelvin Loh said in a statement that the group is taking steps to ensure that its operations can cater for demand in its core business.

“The group’s long-term growth trajectory remains positive, underpinned by favourable healthcare megatrends and our robust financial position,” he said.

The counter closed 2.2 per cent or S$0.04 lower at S$1.81 on Tuesday, before the results announcement.