IHH in the red for Q3 after forex loss

FOREIGN exchange losses on borrowings of a business unit dragged Malaysia-incorporated IHH Healthcare into the red during the third quarter.

The healthcare group posted a net loss of RM104.1 million (S$34.2 million) for the three months ended Sept 30, 2018 reversing from a profit of RM82.1 million for the same period the previous year.

Loss per share for Q3 was 1.53 sen compared to earnings per share of 0.8 sen for the year-ago period. 

Revenue was RM2.8 billion, up one per cent year-on-year after taking in translational effect from a stronger Malaysian ringgit. On a constant currency basis, revenue went up 18 per cent from the same quarter the previous year. 

Nine-month net profit was RM118.3 million, down year-on-year by 86 per cent. 

For Q3, the group's unit Acibadem Holdings took in forex losses of RM752.5 million on its non-Turkish lira denominated borrowings.  This dragged the group into a Q3 net loss of RM104.1 million. Excluding exceptional items including the forex losses, the group said, it would have more than doubled its Q3 net profit to RM309 million.    

IHH managing director and CEO Tan See Leng said: "We are encouraged by the operational resilience of our business, even when our net profit was affected by the forex volatility in Turkey.

"As we optimise existing operations, we continue to position the group for growth. In India, we are excited to officially welcome Fortis Healthcare to the IHH family. Our immediate priority is to stabilise operations, improve operational metrics and ramp up performance to realise this transformational opportunity for the group."

IHH closed at  S$1.57 on Tuesday, down one Singapore cent.