KUALA LUMPUR (Nov 24): Apex Healthcare Bhd (KL:AHEALTH), which recently received a buyout offer from a major shareholder-led consortium, posted weaker third quarter earnings. The decline was due to higher low-margin distribution sales, the absence of last year’s one-off gain, increased depreciation from new assets, and continued losses from its associate caused by slow demand and higher costs.

Net profit for the three-month period ended Sept 30, 2025 (3QFY2025) fell 14.4% to RM15.6 million from RM18.23 million a year earlier, according to its filing with Bursa Malaysia on Monday.

In its bourse filing, the company said its profits were affected by the absence of a RM2.3 million provision reversal, and depreciation and amortisation from its newly acquired Cheng 2 industrial land and buildings, as well as a newly leased 18,500 sq ft warehouse in Singapore (Techlink), both purchased to support long-term growth, the company said.

Apex Healthcare’s associate, Straits Apex Group (SAG), continued to weigh on results, recording a RM3.6 million loss for the quarter, similar to last year. The loss was due to slower-than-expected order recovery and higher costs from relocating and consolidating operations at its new Batu Kawan plant.

Revenue otherwise rose 6.6% to RM253.1 million from RM237.37 million, supported by sustained demand for pharmaceuticals, consumer healthcare and medical devices, particularly in the private sector.

No dividend was declared for the quarter under review.

Moving forward, Apex Healthcare said it will continue expanding its product pipeline, strengthening digital capabilities, and deepening brand and customer engagement to cushion external pressures and sustain business continuity. The group has launched 13 new products year to date, to expand its portfolio of in-house brands.

The group said its core pharmaceutical manufacturing and distribution businesses across Malaysia and Singapore continue to be supported by resilient market conditions.

It added that a strong balance sheet and net cash position provide strategic flexibility and the capacity to capture emerging commercial opportunities, underpinning its expectation of delivering a “satisfactory performance” for FY2025.

For the nine months ended Sept 30, 2025 (9MFY2025), Apex Healthcare recorded a net profit of RM52 million, down 17.6% from RM63.08 million a year earlier. Revenue for the nine-month period edged up to RM732.64 million from RM724.28 million, lifted by improving subsidiary performance and stronger distribution division sales in 3QFY2025.

Shares of Apex Healthcare closed two sen or 0.78% higher at RM2.57 on Monday, valuing the pharmaceutical manufacturer and distributor at RM1.85 billion. The stock has gained almost 5% year to date.