PETALING JAYA: KPJ Healthcare Bhd’s net profit for the second quarter ended June 30, fell 70% to RM12.66 million from RM41.83 million a year ago, impacted by the lower activities in hospital operations during the movement control order (MCO) period coupled with several expenses, such as staff costs, interest on lease liabilities, borrowing costs and depreciation which remain fixed despite the decline in business activities.
Its revenue was 27% lower at RM626.62 million compared with RM860.27 million in the previous year’s same quarter.
For the six-month period, KPJ’s net profit dropped 37% to RM51.19 million from RM80.96 million, and revenue dropped 13% to RM1.51 billion versus RM1.74 billion last year.
For the financial year ending Dec 31, 2020, the group said it recognises that its performance will be adversely affected by the Covid-19 pandemic. The MCO, followed by conditional MCO and recovery MCO have made a significant impact to the operations of the group.
“The group had taken advantage from Prihatin Economic Stimulus Package and Penjana Economic Recovery Plan unveiled by the Malaysian government, which had provided the group immediate assistance such as wages subsidies programme, loan moratorium, tax incentives programme and rental rebates from Al-‘Aqar Healthcare REIT for the lease of land and buildings,” it said in its exchange filing.
It added that it remains cautiously optimistic and will continue to focus on disciplined management of costs and efficient operational cash flows strategy.
“For the second half of the year, the group will remain active in providing its core services and adding new areas of services such as tele-medicine and home visits while continuously educating the public on the implemented standard operating procedures at all our healthcare facilities to ensure Covid-19 risk are appropriately managed,” said KPJ.
source https://www.thesundaily.my/business/kpj-healthcare-earnings-for-second-quarter-down-70-BB3704388
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