SINGAPORE (Aug 28): Health Management International (HMI) reported earnings of RM15.2 million ($5.1 million) for the 4Q ended June, up 43% y-o-y from RM10.7 million a year ago on higher revenue and improved margins.

For the whole of FY18, earnings trebled to RM60.7 million compared to RM20.6 million in the previous corresponding year.

A final dividend of 1 sen has been declared, bringing total dividends per share for FY18 to 2 sen.

Turnover for the latest 4Q grew 7% on-year to RM119.2 million from RM111.7 million due to higher patient load and average bill sixes in HMI’s two hospitals, Mahkota Medical Centre and Regency Specialist Hospital.

Gross profit margin improved to 34.4% from 33% as a result of the higher revenue intensity in both hospitals, as well as better cost management.

Distributing and marketing expenses near-doubled to RM1.7 million from RM0.8 million previously as a result of increased marketing and promotional efforts, including the rebranding of HMI Group during the quarter.

Administrative costs fell 3% to RM18.2 million due to better cost management and lower provision for doubtful debts, offset by higher depreciation expenses.

Finance costs fell 49% to RM2 million, mainly due to the paydown of the group’s term loan drawn down for the acquisition of NCI during the financial year.

A loss attributable to non-controlling interests of about RM 0.5 million was registered over the quarter as compared to none a year ago. This was related to HMI’s non-controlling interests’ share in StarMed and its subsidiaries’ losses, whisays it expects ch were recorded after the group’s acquisition of a 62.5% stake in StarMed @ Farrer Square.

Going forward, HMI expects total healthcare industry spending in Malaysia to continue its momentum into 2020, with Mahkota and Regency to continue their business growth amid rising demand for healthcare across the region as well as increasing foreign patient loads.

“FY2018 was a good year for us as we continued to deliver strong financial performance, expanded our geographical footprint in Singapore and adopted a new unified brand across the group,” comments CEO Chin Wei Jia.

“Against the backdrop of rising demand for healthcare across the region, we remain focused to grow market share and attract more patients to our hospitals. At the same time, we are continuing to grow through the continuous recruitment of specialists and capacity expansion at both of our hospitals,” she adds.

Shares in HMI closed 0.8% higher at 62 cents on Monday.