CEO Morning Brief

TMC Life Sciences’ 2Q Net Profit Falls 20% on Depreciation and Tax Expenses

Publish date: Thu, 09 Feb 2023, 08:44 AM
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TheEdge CEO Morning Brief

KUALA LUMPUR (Feb 8): TMC Life Sciences Bhd’s net profit for the second quarter ended Dec 31, 2022 (2QFY2023) declined 20.49% to RM5.49 million from RM6.91 million a year earlier, due to a sharp increase in depreciation and tax expenses.

Its depreciation and amortisation expenses ballooned to RM6.3 million from RM2.92 million, while finance costs jumped 21-fold to RM2.46 million from RM116,000.

In contrast, quarterly revenue grew 23.85% to RM73.34 million compared with RM59.22 million in 2QFY2022, driven by an increase in Thomson Hospital Kota Damansara's (THKD) capacity and the recovery of the fertility business, according to the group's filing with the bourse.

For the six months ended Dec 31 (6MFY2023), the group’s net profit was up by 7% to RM11.72 million from RM10.95 million, partially offset by depreciation and amortisation as well as high tax expenses. Its six-month revenue climbed 30% to RM145.21 million from RM111.9 million.

“The group is monitoring the global economic issues, particularly inflation that might impact the group’s performance. Barring any unforeseen headwinds, the increased capacity in THKD and the recovery of the fertility business are expected to contribute positively to the growth of the group going forward,” said the healthcare group which is 70.35%-owned by Singapore billionaire Peter Lim Eng Hock via Sasteria (M) Pte Ltd.

TMC Life’s share price, which has risen 19% in the past year, closed at 65.5 sen on Wednesday (Feb 8) — up one sen or 1.55% — for a market value of RM1.14 billion.

Source: TheEdge - 9 Feb 2023

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