KUALA LUMPUR (Nov 16): Apex Healthcare Bhd’s third quarter net profit surged 91.87% to RM26.88 million, from RM14.01 million a year earlier, helped by a significantly stronger share of net-of-tax earnings from its associated company.

Earnings per share for the third quarter ended Sept 30, 2022 (3QFY22) rose to 5.67 sen from 2.96 sen, the healthcare group’s bourse filing showed.

Quarterly revenue climbed 9.96% to RM232.08 million from RM211.06 million as demand for pharmaceuticals, medical devices and consumer healthcare products continued to stay elevated in both domestic and international markets.

“In particular, sale of respiratory medications, including the group’s cough and cold products, remained strong due to the prevalence of Covid-19 and influenza cases in the community,” the group said.

Apex Healthcare’s latest quarterly net profit and revenue is a fresh new high, beating its previously quarterly record net profit of RM23.49 million set in the immediate preceding quarter (2QFY22) and record revenue of RM215.9 million set in 1QFY22.

For the first nine months of the period (9MFY22), Apex Healthcare’s net profit jumped 70.84% to RM66.14 million from RM38.71 million in the same period the year before (9MFY21), as revenue grew 14.68% to RM657.25 million from RM573.1 million.

Apex Healthcare said recovery in the Malaysian economy, as well as the prevalence of Covid-19 infections and the rise in influenza cases in the community have fueled an unprecedented demand for pharmaceuticals, medical devices and consumer healthcare products during the nine-month period.

However, the company is of the view that the prospects of sustaining this recovery momentum into FY23 have weakened, in line with growing pessimism over global growth prospects brought about by the impact of the Ukraine-Russia war on food and energy prices, rising interest rates, record inflation and slowing demand in many countries.

“The pharmaceutical industry is less likely to be severely affected by these developing headwinds, as the demand for medicines is relatively stable through economic cycles.

“However, the group continues to see upward cost pressure on imported raw materials and finished goods, as well as supply chain uncertainties, and expects its performance to moderate, should economic and operating conditions continue to worsen,” it said.

Apex Healthcare’s share price ended six sen or 1.8% higher at RM3.39 on Wednesday (Nov 16), bringing the group a market capitalisation of RM1.62 billion.