IHH Healthcare (IHH) Q4 2024 earnings summary

Executive summary

• Achieved robust double-digit core growth in revenue and EBITDA for FY2024, driven by increased patient volumes and higher revenue intensity across all markets.

• Declared a total dividend of 10.0 sen per share for FY2024, up 11% year-on-year, distributing about 40% of PATMI, above the 30% policy.

• Added nearly 1,000 new beds in 2024, with major acquisitions including Island Hospital and Bedrock Healthcare, supporting operational expansion.

• Maintained a strong balance sheet with RM4.3 billion net cash generated from operating activities.

• Reinforced leadership in clinical excellence, operational expansion, and ESG inclusion, with recognition in FTSE4Good Bursa Malaysia and Shariah indices.

Financial highlights

• FY2024 revenue reached RM24.4 billion (+16% YoY including MFRS 129), EBITDA was RM5.4 billion (+17% YoY including MFRS 129), and PATMI (excluding exceptional items) was RM1.7 billion (+13% YoY excluding MFRS 129).

• Q4 2024 revenue was RM6.7 billion (+26% YoY including MFRS 129), EBITDA was RM1.4 billion (+33% YoY including MFRS 129).

• Net profit attributable to owners was RM2,657 million, with total comprehensive income at RM2,903 million.

• Earnings per share (basic) was 30.17 sen, compared to 33.52 sen in 2023.

• Total assets rose to RM56,759 million, and total equity increased to RM33,908 million.

Outlook and guidance

• Five-year plan targets 4,000 additional beds by 2028, with 1,000 already added in 2024.

• Revenue growth guidance of 10%-12% annually, supported by strong demand and capacity expansion.

• Focus for 2025 on market leadership, profitability, and sustaining healthy ROE.

• No material exposure to global minimum tax anticipated for 2025 due to transitional safe harbour rules.

• Expansion of ambulatory care and lab businesses, and evaluation of value-accretive inorganic opportunities.