RAFFLES Medical Group : BSL 0% posted S$12.4 million profit after tax for the third quarter ended Sep 30, 67.4 per cent lower than the S$38 million in the corresponding period the previous year.

The results were dampened by a discontinuation of Covid-19 activities, while cost inflation also eroded the margin, said the group on Monday (Nov 6).

“The group’s core operations in Singapore remain strong and profitable,” said Raffles Medical. It noted that its transitional care facilities at Expo, which were set up during the pandemic to prevent hospitals from being overwhelmed, had been extended to February 2025.

Its revenue for the quarter was down 24.6 per cent to S$161.6 million, from S$214.2 million the year before.

While patient visits in the group’s China operations increased after the cessation of Covid restrictions earlier this year - improving its revenue - its hospitals in Shanghai and Chongqing are still in the developmental phase and incurring gestational costs.

The group also highlighted that it has started restructuring and rationalising its China operations to achieve “better operating efficiencies”.

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For the three quarters ended September, revenue dropped 14.7 per cent to S$532.4 million, while profit fell 25.6 per cent to S$72.8 million.

The group highlighted a strong balance sheet with a net cash position of S$239.7 million, which improved from the previous year. Its cash generated from operations stood at S$174.3 million for the nine months ended Sep 30.

“The board remains cautious about the dynamic market development in the geographies in which we operate,” said the group, noting an unfavourable business environment with economic uncertainties, coupled with higher inflation and interest rates.

Its board, however, expects the group to remain profitable for the rest of the financial year, barring unforeseen circumstances.

Dr Loo Choon Yong, executive chairman of Raffles Medical, said: “The group plans to grow and expand our patient base by offering integrated healthcare services solutions that are tailored to meet our clients’ needs.”

“We are focused on growing in a value-accretive manner and improving the operational leverage of our existing businesses,” he added.

Shares of Raffles Medical fell 13 cents, or 11 per cent, to S$1.07 on Monday.