KUALA LUMPUR: IHH Healthcare Bhd drowned in a red with a net loss of RM319.79 million in the first-quarter (Q1) ended March 31, 2020, from a net profit of RM89.1 million a year ago.
In an exchange filing today, the healthcare operator said the losses incurred was due to postponements of non-urgent and non-essential treatment and patients’ visits to hospitals and healthcare facilities as well as lower patient volumes.
Its Q1 revenue decreased 2.2 per cent to RM3.56 billion from RM3.64 billion due to cost incurred to implement Covid-19 precautionary and safety measures at the group’s hospitals and healthcare facilities.
The group will continue to explore more avenues to utilise its healthcare expertise and available resources to complement the public healthcare sector in the countries that it operates.
“We expect higher costs of operations from the disruption in supply chains due to the Covid-19 pandemic and wage inflation from continuing competition for skilled healthcare personnel in its home markets,” the exchange filing said.
The group will also diversify into new revenue streams, improve in case mix and tight cost control, while continuing to drive efficient growth, unlock intrinsic value and drive cost savings through global shared services and procurement.
“With the slowdown in patient volumes brought about by the Covid-19 pandemic, we have reviewed our capital expenditure to defer non-critical purchases and non-critical capital expansion projects.”
The group expects an impact from the Covid-19 pandemic for the yer ending December 31, 2020, and a prolonged fallout from the pandemic to dampen its performance.
However, with the gradual easing of movement restrictions from June onwards, the group started to see local patient volumes recover.
“We expect patient volumes to continue its progressive recovery, save for any disruptions from subsequent waves of Covid-19 outbreaks and renewed lockdowns.
“Overall, we remain in a strong financial position to weather the crisis created by the Covid-19 pandemic. Our balance sheet remains robust and funding and liquidity are well positioned. We have a strong cash balance and sufficient financing facilities to draw upon should the need arise,” it added.
IHH said it was optimistic to remain resilient and well-prepared to ride out this health crisis in the long term, while pointing out that its long-term trajectory remains intact.
The group will also continue to execute its refreshed strategy and deliver unrivalled care for its patients.