KUALA LUMPUR (Jan 22): Fertility care company Alpha IVF Group Bhd (KL:ALPHA) has reported a 20.5% decline in second-quarter earnings despite higher revenue, as pre-operational costs tied to its ongoing expansion weighed on profitability.

Net profit for the quarter ended Nov 30, 2025, fell to RM12 million from RM15.1 million a year earlier, while revenue rose 9.4% to RM47.3 million from RM43.24 million. The weaker earnings were mainly attributed to administrative expenses, which surged to RM10.95 million from RM7.06 million.

The group’s gross profit margin, however, remained steady at 59%, according to the company's bourse filing on Thursday.

Alpha IVF continued to pursue aggressive growth, expanding its network of full-fledged IVF centres to six following the opening of new facilities in Kota Kinabalu, and Manila in the Philippines.

The company said these additions will boost treatment capacity, improve patient accessibility, and strengthen its presence in high-growth, underserved markets.

In parallel, Alpha IVF commenced operations at a new satellite clinic in Medan, Indonesia, complementing its existing clinics in Jakarta and Surabaya. The expanding satellite network enhances patient outreach and referral conversion, while supporting capital-efficient growth and preserving balance sheet flexibility.

The company declared a first interim dividend of half a sen per share for the financial year ending May 31, 2026 (FY2026), payable on March 31. This represents a payout ratio of 89.1% for the first half of FY2026, with Alpha IVF reaffirming its commitment to a full-year dividend policy of 60%.

For the first half of FY2026, net profit slipped 7.5% to RM27.28 million from RM29.48 million a year earlier, while revenue climbed 15.3% to RM99.39 million from RM86.24 million.

Malaysia remained the company’s core earnings base, contributing RM90.9 million or 91.5% of total revenue. Revenue from foreign patients grew 17.2% year-on-year to RM61.5 million, supported by sustained inflows from regional markets, while revenue from local patients surged 40.6% to RM29.3 million.

Alpha IVF managing director Datuk Dr Colin Lee Soon Soo said that while earnings were temporarily impacted by expansion-related investments, these initiatives were vital for building a scalable regional platform.

“As new centres mature and utilisation improves, we expect operating leverage to translate into stronger earnings performance,” he said.

Alpha IVF shares closed unchanged at 29.5 sen, valuing the company at RM1.41 billion.