KPJ Healthcare net profit falls 42% yoy for 3Q

KPJ Healthcare net profit falls 42% yoy for 3Q
Business & Markets 2013
Written by Ahmad Naqib Idris Adzman Shah of theedgemalaysia.com
Thursday, 28 November 2013 19:52

KUALA LUMPUR (Nov 28): KPJ Healthcare Bhd recorded a net profit of RM19.4 million in its third quarter, down 42% year on year from RM33.4 million.

Revenue for the third quarter had increased by 7% to RM565.2 million from RM530.6 million in the previous year’s same quarter.

Cumulatively, net profit for 9MFY13 fell to RM69.8 million from RM101.5 million in 9MFY12.

The group’s revenue for the nine months to Sept 2013 rose to RM1.698 billion from RM1.585 billion in the previous corresponding period.

The lower profits recorded during the quarter was due to the losses contributed by the 3 new hospitals namely KPJ Bandar Baru Klang, KPJ Pasir Gudang and PT Khasanah Putera Jakarta Medica.

“The higher revenue for the period is mainly due to the increase in revenue of the existing hospitals and newly open hospitals in the group,” said KPJ in its filing to the exchange.

Looking forward, the group said it will continue to strengthen its presence in Malaysia and Asia through opening new hospitals and also through expansion of existing hospitals.

“The expansion of existing hospitals will have a positive impact to the group results for 2013, however this will be moderated by the new Greenfield hospitals where each of these hospitals will have an average gestation period between three to five years,” said the group.

KPJ also mentioned in its report that the healthcare industry will continue to enjoy growth in its current financial year due to population growth, rapid ageing, the rising of middle income and health tourism.