TMC Life Sciences Bhd's net profit for the first financial quarter ended Sept 30, 2024 (1QFY2025) dropped 80.6% to RM2.94 million from RM15.14 million a year ago on lower revenue while its staff costs and other operating expenses rose.

KUALA LUMPUR (Nov 18): TMC Life Sciences Bhd (KL:TMCLIFE) saw its net profit for the first financial quarter ended Sept 30, 2024 (1QFY2025) fall 80.6% to RM2.94 million from RM15.14 million a year ago, as the healthcare group posted a lower revenue while its staff costs and other operating expenses rose.

Quarterly revenue fell 11.3% to RM81.97 million from RM92.44 million a year earlier.

“The decline was attributed to termination of certain customer contracts and discounts given to institutional customers,” TMC said in a bourse filing statement on Monday. No dividend was declared.

Looking forward, TMC expects that the increased capacity at its Thomson Hospital Kota Damansara and the rebound of its fertility business will drive its growth.

Additionally, it is focusing on diversifying the customer base including international market expansion.

Last week (Nov 11), the company’s two largest shareholders — Sasteria (M) Pte Ltd and the Regent of Johor, Tunku Ismail Sultan Ibrahim — had issued special notices requisitioning for an extraordinary general meeting to immediately remove its group chief executive officer Wan Nadiah Wan Mohd Abdullah Yaakob as a director of the company.

Wan Nadiah has been suspended from her position as group CEO and as CEO of the group's subsidiary Thomson Hospitals Sdn Bhd since Jan 29 this year to "facilitate an internal disciplinary process" relating to six allegations of misconduct against her, which were later expanded to 15, based on two show-cause letters issued to her.

The allegations, however, were not revealed by the group.

Shares in TMC closed unchanged at 52.5 sen on Monday, giving the group a market capitalisation of RM914.49 million. Year-to-date, the stock has fallen 26.6%.