KUALA LUMPUR (July 23): Alpha IVF Group Bhd's (KL:ALPHA) net profit slipped 7.5% in the financial year ended May 31, 2026 (FY2026), as higher pre-operating expenses tied to its regional expansion outweighed record revenue.

Net profit fell to RM53.15 million from RM57.45 million in the previous financial year, despite revenue rising 12.3% to an all-time high of RM198.59 million from RM176.84 million, driven by stronger demand from both local and international patients at its Malaysian centres, the fertility care specialist said in a Bursa Malaysia filing on Thursday.

Malaysia remained the group's largest market, contributing RM178.8 million, or about 90% of total revenue. Singapore generated RM16.1 million, while the Philippines and Indonesia contributed RM2 million and RM1.8 million respectively.

The group's 4QFY2026 net profit declined 16.5% to RM13.42 million from RM16.07 million a year earlier, even as revenue edged up 2.4% to RM51.19 million from RM50.01 million. Earnings per share fell to 0.28 sen from 0.33 sen.

Compared with the preceding quarter, net profit rose 7.7% from RM12.46 million.

Alpha IVF declared a second interim dividend of 0.60 sen per share, bringing total dividends for FY2026 to 1.10 sen per share, or RM53.5 million. The payout represents 99.7% of annual net profit, exceeding the group's policy of distributing at least 60% of earnings to shareholders.

Looing ahead, the group expects pre-operating expenses to ease as new centres commence operations, broadening its earnings base and supporting financial performance from FY2027.

Alpha IVF said it is moving from a capital-intensive expansion phase towards operational scaling, with several projects nearing completion. Renovation of its Johor centre began in July and the facility is scheduled to open by year end.

Overseas, centres in Tuguegarao in the Philippines and Jakarta are on track to begin operations in the first half of FY2027, while its Bali centre is targeted to open by mid-2027. Upon completion, Alpha IVF will operate 10 fully fledged IVF centres across Malaysia, Singapore, Indonesia, the Philippines and China.

"We have seen encouraging responses to our new centres in Sabah and Manila, with patient demand building and both centres already beginning to contribute to our revenue," group managing director Datuk Dr Colin Lee said in a separate statement.

"As these new centres mature and our expansion phase nears completion, we expect the associated start-up and expansion costs to gradually normalise, which should see our profits growing in tandem with revenue growth."

Alpha IVF shares closed unchanged at 25.5 sen on Thursday, valuing the company at RM1.24 billion. The stock has declined 15% so far this year.