KUALA LUMPUR: IHH Healthcare Bhd's net profit shrank 54.2 per cent to RM251.76 million in the third quarter (Q3) ended Sept 30, 2022 from the RM550 million recorded in the same quarter a year ago.
In a statement today, managing director and chief executive officer Dr Kelvin Loh said the lower profit was due to a high base in Q3 FY21 that saw a recognition of higher deferred tax assets of RM248.2 million.
This was coupled with higher depreciation and amortisation due to MFRS 129-related adjustments and foreign exchange losses in Q3 FY22.
"However, our core operating performance improved. Like-for-like, net operating Income for Q3 FY22 improved six per cent to RM374.2 million and revenue was up four per cent as we pivoted well out of the pandemic.
"We expect inpatient volumes and bed occupancy to grow as we enter a post-Covid world and are taking steps to ensure our operations can cater for this demand in our core business.
"The group's long-term growth trajectory remains positive, underpinned by favourable healthcare megatrends and our robust financial position," he said.
The healthcare provider's revenue in Q3 increased 3.4 per cent to RM4.59 billion from RM4.44 billion.
For the nine-month period, IHH's net profit decreased 3.7 per cent to RM1.36 billion from RM1.41 billion, while revenue increased 3.7 per cent to RM13.13 billion from RM12.66 billion.
IHH expects inpatient volumes and bed occupancy to grow in a post-Covid world.
However, it said the healthcare industry faced near-term macroeconomic headwinds such as inflationary pressures, including salary costs from nursing shortages, as well as high energy prices and rising interest rates.
In China, it expects continued challenges with its operations and investments on the mainland and will review its portfolio to minimise ongoing losses.
IHH said its long-term growth trajectory remained intact given its robust financial position and cash generation, operational resilience and continued focus on delivering its "Care. For Good." strategy.
"It expects its cluster strategy and strong pent-up demand for private healthcare to drive ROE and growth for its core hospitals and healthcare business.
"At the same time, it will develop its other businesses, such as laboratory and diagnostics, as new engines of growth over the longer term," it added.