[SINGAPORE] Integrated healthcare provider IHH Healthcare posted a 28.9 per cent drop in net profit to RM443 million (S$134.7 million) for its second quarter ended Jun 30, 2025, from RM623 million in the previous corresponding period.
This comes despite revenue inching up 3.4 per cent to RM6.3 billion for Q2 2025, from RM6.1 billion in the year-ago period.
In a bourse filing on Friday (Aug 29), IHH Healthcare said the higher revenue was offset by larger staff costs, other operating expenses such as utilities, as well as startup and pre-opening costs of two hospitals in Turkey that opened in the first half of the year.
Staff costs for Q2 2025 increased by RM145 million to RM2.45 billion, from RM2.31 billion a year earlier. The increase comes as the group “expands its capacity to cater for higher demand for its services and annual increment”.
Earnings per share dropped 29 per cent to 5.02 sen, from 7.07 sen for Q2 2024.
An interim single-tier cash dividend of 5 sen per share was declared for Q2 2025, up from 4.5 sen in the corresponding quarter the year before. The dividend will be paid on Oct 30, after close of business on Sep 30.
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The group said its hospital and healthcare revenue growth in Q2 2025 was “driven by sustained demand for quality healthcare services, a case-mix of more acute patients and price adjustments to counter inflation”.
Revenue was also boosted by its consolidation of Island Hospital, acquired in November 2024.
While hospital inpatient admissions in Singapore for the quarter fell some 9 per cent, those in Malaysia grew around 4 per cent. India, Turkey and Europe figures increased as well.
For H1 2025, net profit fell 31.2 per cent to RM957 million from RM1.39 billion in the year-ago period. Revenue for the six-month period rose 4.5 per cent to S$12.6 billion, from S$12.1 billion a year earlier.
Earnings per share for H1 2025 stood at 10.85 sen, down 31.3 per cent from 15.79 sen for H1 2024.
Noting that the healthcare landscape is “continually evolving”, IHH Healthcare said: “Advancement in medical technology and improved clinical outcomes have spurred the demand for day surgeries while shortening inpatient length of stay.”
That said, it added that payer pressures from public and private insurers alike “continue to shape reimbursement dynamics in the industry”.
Shares of IHH Healthcare closed Friday at S$2.04, down S$0.01 or 0.5 per cent.
