Thursday 28 Mar 2024
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KUALA LUMPUR (Nov 20): TDM Bhd saw a 66% year-on-year drop in its net profit for its third quarter ended Sept 30, 2017 (3QFY17) to RM8 million from RM23.42 million, no thanks to higher expenses, particularly administrative.

Its income statement filed to Bursa Malaysia today showed administrative expenses doubled to RM41.41 million from RM20.54 million a year ago, while other expenses and distribution costs also rose.

Quarterly revenue, however, rose 11% y-o-y to RM114.12 million from RM102.78 million, largely due to stronger crop production and higher palm product selling prices.

It noted that production of crude palm oil (CPO) and palm kernel (PK) increased by roughly 13% and 17% respectively during the quarter; while average prices of CPO and PK rose by 5% and 3% respectively.

TDM, which is also a hospital operator, said it recorded higher revenue and earnings at its healthcare segment due to a 2% rise in both its number of in-patients and average revenue per in-patient.

Its net profit for the first nine months of FY17 (9MFY17) shrank 41% y-o-y to RM25.35 million from RM43.16 million, though revenue climbed 8% to RM327.74 million from RM303.35 million.

Looking ahead, TDM expects CPO price to improve due to stable global demand and lower crop output, compared to earlier estimated production, and remains focused on improving productivity and optimising production cost.

As for its healthcare segment, it believes the entry of new players will continue to weigh on the sector. "We are cautiously optimistic that our healthcare division growth will remain supported by our capacity expansion and the introduction of new service modalities," it said.

Shares in TDM closed unchanged today at 50.5 sen for a market capitalisation of RM837.23 million.

 

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