Raffles Medical reports 2Q19 net profit fell 16 percent on Raffles Hospital Chongqing

Raffles Medical’s Raffles Hospital at Bugis In SingaporeRaffles Medical’s Raffles Hospital at Bugis In Singapore

Raffles Medical Group reported Monday its second quarter net profit fell 15.6 percent on-year to S$14.25 million on “gestation” losses for Raffles Hospital Chongqing.

Excluding Raffles Hospital Chongqing, which opened in January, net profit after tax for the quarter would have grown 0.4 percent, the company said.

Revenue for the quarter ended 30 June increased 5.6 percent on-year to S$126.96 million on higher contributions from the healthcare services division after winning more insurance contracts and corporate clients, the hospital operator said in a filing to SGX.

Hospital services revenue also increased on patient growth, it added.

Expenses for inventories and consumables used rose 7.5 percent on-year to S$14.41 million on increased sales of medical supplies and services, Raffles Medical said.

Purchased and contracted services expenses increased 19 percent on-year to S$12.21 million, mainly on higher insurance claims, inline with increased insurance premiums, the company said.

Other operating expenses rose 22.2 percent on-year to S$8.94 million on increased advertising and business promotion expenses and building and related expenses for the Raffles Specialist Centre and Raffles Hospital Chongqing, the company said.

Raffles Medical declared a dividend of 0.5 Singapore cent a share, unchanged from the year-ago period.

In its outlook, Raffles Medical said it expected to remain profitable this year, despite the losses related to Raffles Hospital Chongqing.

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