KUALA LUMPUR, Feb 18 — KPJ Healthcare Bhd’s net profit for financial year ended Dec 31, 2021 (FY2021) fell to RM51.03 million from RM110.44 million recorded for FY2020.

However, revenue increased 10 per cent to RM2.63 billion from RM2.40 billion previously, mainly due to increased activities throughout the year, including greater collaboration with the public healthcare sector to treat Covid-19 patients, higher Covid-19 screening, laboratory testing and vaccination services.

In a filing with Bursa Malaysia, the company said group pre-tax profit fell 23 per cent from RM115.6 million in FY2020, mainly due to the increase in materials cost as a result of complying with the Covid-19 standard operating procedure requirement.

“Usage of personal protective equipment by our employees and compulsory requirement for RT-PCR test for all inpatients had resulted in higher operating costs during the Covid-19 pandemic. In addition, the group made a reversal of provisions in 2020 that was not repeated in 2021,” it said.

As for the fourth quarter ended Dec 31, 2021 (Q4 FY2021), the company saw its net profit shrank to RM18.46 million against RM25.29 million previously, while revenue widened to RM689.12 million from RM622.34 million previously.

In a separate statement, president and managing director Ahmad Shahizam Mohd Shariff said Q4 witnessed continued improvement in the Malaysian economy as relaxations on restrictions have led to signs of recovery and improved consumer confidence.

“In 2021, we have completed the first phase of its transformation programme, implementing a number of fundamental organisational changes.

“The second phase of our transformation, which we have named STAR 25, will focus on delivering growth,” he said, adding that the proceeds raised from its RM3 billion Sukuk Wakalah Programme will allow the company to rebalance its capital.

“The proceeds will be utilised for our shariah-compliant future expansion activities, this includes capital expenditure to push towards upgrading of our existing infrastructure, expanding into new markets such as ambulatory care centres and the digitalisation of hospital network,” he said.

Moving forward, the group said it has identified key strategic focus areas for 2022 that will shape its ability to navigate from recovering to thriving in the post-pandemic phase and will continue to focus on covering greater adoption of virtual health and other digital innovation. — Bernama