KUALA LUMPUR (May 31): IHH Healthcare Bhd posted a net profit of RM1.39 billion for the first quarter ended March 31, 2023 (1QFY2023), its highest quarterly profit since its listing in 2012 — thanks to a one-off gain from the sale of the group's medical education arm, International Medical University (IMU), for RM1.35 billion.

The record quarterly profit is more than double the RM493.26 million net profit the group reported for the same quarter last year.

Earnings per share increased to 15.79 sen from 5.36 sen.

IHH also recorded its highest quarterly revenue of RM5.14 billion, up from RM4.16 billion in 1QFY2022.

The group declared a special dividend of 9.6 sen per share following the divestment of IMU. The dividend will be paid on June 30.

In a bourse filing, IHH said the better results for 1QFY2023 is also due to the strong volume of patient growth.

The group said it will add more than 2,000 new beds across Malaysia, India and Türkiye over the next three years, while exploring other strategic opportunities to meet growing healthcare needs and demand both locally and from the region.

Besides pursuing operational growth, IHH said it will continue to seek earnings-accretive opportunities to acquire strategic assets across Asia and Europe, besides reviewing asset portfolios and divesting any non-core assets at appropriate time.

Notwithstanding the strong underlying demand for quality healthcare services, IHH expects cost pressures from elevated inflation, tight supply of nurses, and rising interest rates.

“The group will maintain a tight rein on costs and leverage synergies from its international network to achieve cost savings, while at the same time, delivering appropriate care and value to its patients.

"The group aims to achieve this via its Value-Driven Outcomes initiatives, which would lead to improved outcomes and care while ensuring cost effectiveness through eliminating waste and unnecessary practices such as unneeded medical tests,” it added.

Shares of IHH Healthcare closed down one sen or 0.17% at RM5.77, valuing the group at RM50.82 billion.