KUALA LUMPUR, Nov 29 (Bernama) -- IHH Healthcare Bhd posted a net profit of RM236.34 million for the third quarter ended Sept 30, 2019 (Q3) compared with a net loss of RM104.07 million in the same quarter last year.
In a filing to the stock exchange, the global healthcare provider said revenue rose 33 per cent to RM3.79 billion from RM2.84 billion previously.
It said revenue improved on sustained organic growth at existing operations and contributions from Gleneagles Hong Kong Hospital and Acibadem Altunizade Hospital in Turkey, both opened in March 2017.
For the first nine-month period, net profit jumped to RM510.85 million from RM118.27 million, while revenue increased 33 per cent to RM11.08 billion from RM8.35 billion.
IHH said the group’s balance sheet remained strong as of end-September, with net cash generated from operating activities for the nine months at RM1.7 billion and an overall cash balance of RM4.6 billion.
Net gearing edged up to 0.15 times versus 0.10 times as at Dec 31, 2018, on strategic investments including Fortis in India.
IHH chief executive officer (designate) and executive director Dr Kelvin Loh said prioritising operational synergies and integration produced a strong set of third-quarter results.
He pointed out that the proposed acquisition of Prince Court Medical Centre was set to enhance its leadership position in Malaysia.
Moreover, IHH’s proactive stance to recalibrate non-lira loans in Acibadem had also reduced its exposure to currency volatility.
“In India, Fortis delivered another impressive performance as we continue to see healthy momentum with an improvement to its operational profitability in both the hospital and diagnostics business.
“We’re also excited with our progress in Greater China, where we have just opened Gleneagles Chengdu,” Loh said in a statement, adding that IHH would continue to ramp up operations at Gleneagles Hong Kong amidst steady demand.
Moving forward, IHH plans to further consolidate its multi-country portfolio strategy to diversify its earnings base in cashflow-generative markets such as Singapore and Malaysia, capture medium-term growth momentum from Turkey and long-term growth opportunities from India and Greater China.