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Econ Healthcare reports 8% y-o-y growth in earnings of $6.3 mil for FY2024

Nicole Lim
Nicole Lim • 2 min read
Econ Healthcare reports 8% y-o-y growth in earnings of $6.3 mil for FY2024
The group’s improved top line performance was largely attributed to Singapore, its largest market segment. Photo: Econ Healthcare
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Catalist-listed Econ Healthcare (Asia) has reported earnings of $6.3 million for FY2024 ended Mar 31, 2024, a 8% y-o-y growth from the same period a year before. 

The group’s patmi from continuing operations margin however, saw a 8.5% decrease to 12.4% for the full year, from 13.6% in the same period a year ago. 

Econ Healthcare’s ebitda came in 2.9% y-o-y lower for the full year at $16.4 million, and its ebitda margin declined by 17.7% y-o-y to 32.3%. 

The group’s revenue saw a 18.1% y-o-y growth for the FY2024 to $50.8 million compared to $43 million in the same period the year before. 

The group says that its improved top line performance was largely attributed to Singapore, its largest market segment which contributed a $6.7 million increase in revenue.

Econ Healthcare’s newly acquired subsidiary, Ambulance Medical Service (AMS), and its Malaysia operations contributed to a total of $1.1 million in revenue growth. 

See also: Fortress Minerals reports 7.6% lower y-o-y earnings for 1QFY2025

Other income decrease by $1.7 million was mainly due to a decrease in funding for Econ Care Residences (Henderson), jobs growth incentive grants of $0.1 million, staff accommodation grants of $0.1 million, workforce development grants of $0.1 million, and grants on healthcare hiring in advance initiatives of $0.3 million.

The group says that these decreases were offset by the increase in grants of $1.3 million for salary enhancements. However, this grant will be phased out in July 2024 with a rebasing exercise and revised operating subvention grant.

The group’s cash and cash stood at $16.2 million as at Mar 31, and it has proposed a final dividend of 0.63 cent per ordinary share, with an interim dividend of 0.23 cents per ordinary share paid in December 2023, which brings their dividend yield for FY2024 to 4.5%.

See also: Temasek’s net portfolio value up 1.83% y-o-y to $389 bil on its 50th anniversary

Ong Chu Poh, Executive Chairman and Group CEO, said: “We will continue to invest in developing our workforce and building capabilities to meet current and future needs. By recognising and valuing their contributions, we empower our staff to deliver exceptional services, driving the continued growth and success of the organisation. The outlook for eldercare services remains positive as the global demand continues to rise. ECON is committed to achieve growth and will continue to capitalise on opportunities in the region to meet the  increasing demand for senior care by delivering high-quality and sustainable eldercare services.”

Shares in Econ Healthcare closed flat at 19.1 cents on May 28.

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