KUALA LUMPUR (Feb 27): IHH Healthcare Bhd (KL:IHH) reported a 27.9% decline in net profit to RM528 million for the fourth quarter, compared with RM732 million a year earlier, mainly due to foreign exchange paper losses from a stronger ringgit.

On a constant currency basis and excluding the effects of MFRS 129 — the accounting standard for hyperinflationary economies applied to the group's Türkiye operations — revenue for the quarter ended Dec 31, 2025 (4QFY2025) rose 20% year-on-year to RM6.8 billion, according to the group's bourse filing.

Profit after tax and minority interests excluding exceptional items (Patmi ex-EI) increased 34% to RM633 million, supported by strong performances in Malaysia and India.

IHH declared a final dividend of 5.5 sen per share, payable on April 30, bringing total FY2025 dividends to 10.5 sen, higher than the 10 sen paid in FY2024.

Earnings before interest, taxes, depreciation and amortisation (Ebitda) grew 11% year-on-year to RM1.5 billion. On a constant currency basis and excluding MFRS 129 effects, Ebitda would have risen 20%.

Staff costs increased 4% to RM2.49 billion, while net finance costs fell 21% to RM229 million. Depreciation and impairment of property, plant and equipment rose 4% to RM358 million.

For the full year, net profit declined 20.9% to RM2.1 billion from RM2.66 billion in FY2024, weighed down by forex losses, higher staff costs and increased depreciation charges. Full-year revenue, however, grew 5.6% to RM25.75 billion from RM24.38 billion.

Regionally, IHH said it will continue to grow daycare volumes in Malaysia while managing pay or pressure and medical inflation with more efficient care.

In Singapore, contributions from Mount Elizabeth Orchard are expected to stabilise in the second half of 2026.

Meanwhile, in India, the completion of the Fortis acquisition paves the way for greater flexibility to pursue growth, with Fortis and Gleneagles expected to extract more synergies from their management services agreement.

As for Türkiye, the group aims to sustain market leadership and drive operational resilience.

The group, which achieved a return on equity of 9% in FY2025, said it is on a multi-year transformation journey to future-proof its business, accelerate growth and drive profitability, targeting double-digit ROE by 2028. Capital management will remain prudent amid inflationary and interest rate pressures.

“Looking ahead, we are doubling down on people development and technology-powered productivity. This, together with our unrelenting focus on industry leadership in clinical excellence and innovation, will enable us to achieve our target of double-digit ROE by 2028,” said IHH group chief executive officer Dr Prem Kumar Nair.

Shares in IHH closed up 10 sen or 1.1% at RM9.12 on Friday, valuing the group at RM80.59 billion. Over the past year, the stock has gained 24.8%.