ISEC Healthcare Q1 net profit slumps 37% due to Covid-19 movement curbs

ISEC Healthcare on Tuesday posted a 37 per cent drop in net profit to S$1.39 million for its first quarter ended March 31, from S$2.22 million a year ago. 

This was due to nationwide movement restrictions implemented by the Malaysia and Singapore governments to curb the spread of Covid-19 in their countries, the Catalist-listed medical eyecare services provider said in a regulatory filing. 

The group's main revenue contributor is its Malaysia operations.

Revenue for Q1 fell 7 per cent to S$9.27 million, from S$9.94 million a year ago, mainly due to decreased business activities from the group's specialised health services segment in Malaysia and Singapore.

ISEC Healthcare said its cost of sales had also increased by 4 per cent or S$0.22 million to S$5.31 million in Q1 from higher staff-related expenses, including the hiring of four specialist doctors during the quarter.

Salaries have been further slashed for the company's ophthalmologists with the deferral of all non-essential eye consultations and procedures in Singapore, in line with the government's rules. They have accepted an 80 per cent pay cut for April, compared to a 50 per cent reduction previously, ISEC said.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL

It added that it would continue to review ophthalmologists' salaries in the coming months.

No dividend was declared for the quarter, unchanged from a year ago.

The company said it would assess the pandemic's impact on clinic operations for the current financial year and beyond, and assess if any impairment loss for goodwill needed to be accounted for.

Its board said the group's financial performance for the remainder of the financial year is likely to be adversely affected.

Shares of ISEC Healthcare were trading flat at S$0.30 as at 9.15am on Wednesday.