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IHH swings into black with Q4 profit of RM101.26m on absence of exceptional items
PREMIUM healthcare group IHH Healthcare Berhad reported a net profit of RM101.26 million (S$34.16 million) for Q4 FY2017 compared to a loss of RM42.51 million for Q4 FY2016, which was impacted by a number of exceptional items.
Stripping out the exceptional items, net profit would have fallen 18 per cent to RM181.9 million on the back of incremental depreciation, amortisation and finance costs with the opening of two new hospitals in March last year.
Revenue rose 10 per cent year-on-year to RM2.88 billion on the back of growth from existing operations and the ramp-up of the new hospitals - Gleneagles Hong Kong Hospital and Acibadem Altunizade Hospital - which opened last year. Tokuda Group and City Clinic Group in Bulgaria also contributed to higher revenue following their acquisition in June 2016.
Earnings per share for the quarter came to 0.95 sen, compared to a loss per share of 0.52 sen previously.
The board has recommended a first and final dividend of three sen per share for the full year, on a par with what it paid out in the prior financial year.
For the 12 months ended Dec 31, 2017, revenue increased 11 per cent to RM11.14 billion, while net profit rose 58 per cent to RM969.95 million. Excluding exceptional items, profits would have been 31 per cent lower at RM595.3 million.
IHH chief executive Tan See Leng said: "Looking ahead, we are poised for growth. Our newer hospitals will become game changers for the group, with Gleneagles Hong Kong in particular, putting us well on the way to making Greater China our fifth home market as our slate of hospital projects takes shape."