KUALA LUMPUR (Feb 27): IHH Healthcare Bhd (KL:IHH) posted a slight increase in net profit to RM732 million for the fourth quarter ended Dec 31, 2024 (4QFY2024), compared with RM728 million a year earlier, driven by a 26% year-on-year rise in revenue.

Quarterly revenue climbed 26.5% to RM6.69 billion from RM5.29 billion, supported by sustained demand for quality healthcare services, higher inpatient volumes, and increased revenue intensity from handling more complex cases. The consolidation of Timberland Medical Centre and Island Hospital following their acquisition also contributed to the revenue growth.

IHH declared a final dividend of 5.5 sen per share, payable on April 28, bringing the total FY2024 dividend to 10 sen per share, higher against the nine sen per share paid in FY2023. 

Earnings before interest, taxes, depreciation, and amortisation (Ebitda) surged 33% year-on-year (y-o-y) to RM1.4 billion, the group said in a filing with Bursa Malaysia.

Excluding the effects of MFRS 129 — an accounting standard for financial reporting in hyperinflationary economies, which applies to its entities in Türkiye — the healthcare group’s revenue and Ebitda would have grown by 13% and 9% year-on-year, respectively.

IHH’s staff costs soared 33% y-o-y to RM2.59 billion and finance costs surged 38% y-o-y to RM341 million. Its depreciation and impairment of property, plant and equipment went up by 37% y-o-y to RM372 million. 

This represents a payout ratio of 40% of profit after tax and minority interests (Patmi), exceeding its revised dividend policy requirement of 30%.

For the full FY2024, net profit declined 10% to RM2.66 billion from RM2.95 billion in the previous year, primarily due to foreign exchange losses, higher staff costs, and increased depreciation charges. However, annual revenue grew 16% to RM24.38 billion from RM20.94 billion in FY2023.

Amid rising healthcare demand locally and regionally, IHH remains optimistic about its growth trajectory. The group plans to add nearly 4,000 new beds over the next four years as part of its five strategic priorities.

Looking ahead, IHH expects continued revenue growth, driven by healthcare megatrends. It aims to enhance profitability, maintain prudent capital management, and mitigate inflationary and interest rate pressures.

“Going forward, IHH will continue to drive high-value, cost-effective care for our patients by improving clinical outcomes and patient experience. The favourable secular trends in our key markets provide strong tailwinds for our continued growth,” said IHH chief executive officer Dr Prem Kumar Nair. 

“We are confident in strengthening our position as a global healthcare leader while delivering healthy returns to our shareholders,” he added. 

Shares of IHH went up one sen to close at RM7.31 on Thursday, valuing the healthcare provider a market capitalisation of RM64.35 billion. The healthcare stock has gained roughly 17% since August last year.