Livingstone Health H1 net profit rises 56% on strong demand for Sinovac vaccines

LIVINGSTONE Health Holdings PRH posted a 56 per cent rise in net profit to S$2.1 million for its first half ended Sep 30, from S$1.3 million a year ago.

This was mainly due to improved contributions from its existing business segments, as well as maiden contributions from new initiatives and the sale and administration of Sinovac vaccines, the specialist healthcare group said in a bourse filing on Tuesday (Nov 2).

Earnings per share stood at S$0.0065 for the half-year period, up from S$0.0042 a year ago.

Revenue for H1 jumped 97 per cent to S$16 million, from S$8.1 million a year ago. The group said its growth across all segments was propelled by the addition of doctors, new medical practices and allied healthcare services, amid operational challenges due to the Covid-19 pandemic.

No dividend was declared for the half year, versus a dividend of S$0.0069 per share a year ago.

This is the first time the group is reporting its half-year results since it listed on the Catalist board of the Singapore Exchange, following a reverse takeover (RTO) in February.

By segment, revenue from its anaesthesiology and pain management segment and orthopaedic surgery segment increased by S$900,000 and S$3.3 million, respectively, mainly due to additional doctors recruited.

Revenue from its aesthetics and wellness segment increased by S$700,000, mainly due to lower patient volume in the same period a year ago as a result of closures during the circuit breaker period in 2020.

Meanwhile, revenue for its internal medicine segment - established in November 2020 - was up S$600,000.

The group, which now has 16 medical doctors practising at 14 medical clinics, is also planning to start a gastroenterology practice at Mount Elizabeth Orchard next month.

In September, the Ministry of Health of Singapore also appointed Livingstone Health's subsidiary to lead the procurement of 101,000 additional doses of Sinovac vaccines on behalf of private healthcare institutions in Singapore.

The group said it has seen strong demand for the vaccines, with the sale and administration of Sinovac vaccines contributing to the S$2.2 million increase in revenue recorded by its primary healthcare division Phoenix Medical Group in the 6-month period.

However, it recorded higher expenses, which it attributed to employee benefit expenses as well as consumables and medical supplies from adding doctors under the group's expansion plans.

Livingstone Health said it expects its performance for FY2022 to improve compared to FY2021, given the vaccine procurement, distribution and administration, its growth strategies, as well as the absence of the financial effects of the RTO and RTO-related professional costs.

Shares of Livingstone Health closed at S$0.153 on Monday (Nov 1), down S$0.001 or 0.7 per cent.

READ MORE: Livingstone Health maps expansion plans