KUALA LUMPUR, June 29 — IHH Healthcare Bhd posted a net loss of RM319.79 million for the first quarter ended March 31, 2020 (Q1 2020) from a net profit of RM89.51 million in the same period last year.
Revenue fell to RM3.55 billion from RM3.64 billion previously.
In a filing with Bursa Malaysia today, the group attributed the loss to impairment on the remaining goodwill of RM400.5 million from an investment in Global Hospitals in India, and realisation of RM60 million foreign currency translation losses relating to Khubchandani Hospitals in India upon substantive liquidation.
Managing director and chief executive officer Dr Kelvin Loh said like many businesses, the group had not been spared from the unprecedented effects of the COVID-19 pandemic.
“Still, we delivered resilient operational performance in Q1 2020. Our focus is on maintaining prudent fiscal discipline, driving synergies and diversifying our income streams.
“Looking ahead, our refreshed strategy will give us the resilience to weather the pandemic while positioning for longer-term growth,” said Loh.
He said the impact from the pandemic would continue for FY2020, adding that the prolonged fallout from subsequent outbreaks and renewed lockdowns may further dampen the group’s performance.
However, Loh added that the impact would be partially mitigated by diversifying into new revenue streams through planned growth in areas including diagnostics, laboratory testing and telemedicine, improving case mix and enforcing cost controls and capital discipline, including by deferring all non-critical capital expansion projects. — Bernama
