IHH Healthcare Q4 net profit surges to RM419.4m

IHH Healthcare's net profit surged to RM419.4 million (S$137.5 million) in the fourth quarter of 2020, from RM40.6 million in the corresponding period of the previous year.

The hospital operator attributed this to the effects of a lower base due to one-off items in Q4 2019 and proactive management to reduce its non-lira debt borrowing exposure. Excluding exceptional items, net profit would have risen 28 per cent on higher pre-tax earnings, better operational efficiency and lower finance costs.

Revenue shrank 2 per cent to RM3.8 billion as lower patient volumes due to Covid-19 and travel restrictions were partially offset by Covid-19 related services that IHH provided. (see amendment note)

Earnings per share was 4.52 sen, up from 0.21 sen in Q4 2019.

Full-year net profit was RM288.9 million, down 48 per cent from RM551.5 million in FY2019. Revenue was RM13.4 billion, down 10 per cent from RM14.9 billion. The falls were attributed to the effects of the pandemic.

Earnings per share for the year was 2.27 sen, versus 5.28 sen a year ago.

The board has declared a first and final cash dividend of four sen per share to be paid out on April 30. IHH paid out the same amount for FY2019.

IHH shares closed at S$1.69 on Friday, up S$0.02 or 1.2 per cent.

Amendment note: An earlier version of this article stated that IHH's revenue was RM3.8 million. It should have been RM3.8 billion.