IHH Healthcare Bhd reported a 33% decline in net profit to RM514 million for the first quarter ended March 31, 2025 (1Q25), compared to RM768 million a year earlier.
The drop was largely due to the absence of a deferred tax credit in Türkiye and lower net monetary gains under MFRS129.
Excluding these one-off accounting effects, core net profit rose 5% year-on-year.
Revenue increased 5.7% to RM6.29 billion, driven by stronger inpatient volumes across Malaysia, Türkiye, and Europe.
Despite strong demand for healthcare services, the group highlighted rising cost pressures, with staff costs up 11% and finance costs rising 10% due to recent acquisitions.
In response, IHH has launched a multi-year transformation plan focused on clinical excellence, operational efficiency, new care models, and technological advancement to future-proof the business.
The group underscored the resilience of its diversified geographical portfolio as a strategic advantage in managing cost and regulatory pressures.
IHH shares closed unchanged at RM6.91 today, with a market cap of RM60.97 billion. –TMR
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