KUALA LUMPUR (Aug 27): KPJ Healthcare Bhd saw net profit drop 67% to RM12.66 million in the second quarter ended June 30, 2020 (2QFY20) from RM38.53 million in the preceding quarter due to the full impact of the Covid-19 pandemic disruption on its business.

Revenue also dipped 29% quarter-on-quarter to RM626.62 million in 2QFY20, as it received less patients during the movement control order (MCO) period.

Net profit was also down 70% on a year-over-year (y-o-y) basis, from RM41.83 million. This resulted in a lower earnings per share of 0.30 sen for 2QFY20 versus 0.97 sen for 2QFY19.

Revenue for the quarter fell 27% y-o-y to RM626.62 million from RM860.27 million.

Despite the weak quarterly performance, the group declared a dividend of 0.3 sen per share on June 10, 2020. According to KPJ's filing on that day, the dividend payment date was July 28, 2020.

In a bourse filing today, KPJ said the quarter under review was impacted by lower activities in hospital operations during the MCO period coupled with several expenses, such as staff costs, interest on lease liabilities, borrowing costs and depreciation which remained fixed despite the decline in business activities.

“During the lockdown period, all elective procedures were postponed or delayed and hospitals were focusing on the critical and life-threatening cases. Hence, the average bed occupancy rate (BOR) for the second quarter of 2020 was at 34%, a significant decrease from 64% in the same period last year,” it added.

However, after the government put in place the Recovery MCO starting June 10, the group saw business activities improve, evidenced by an increase in average monthly BOR of 39%.

In the cumulative six months (1HFY20), KPJ's net profit fell 37% to RM51.19 million from RM80.96 million a year ago, while revenue dropped 13% y-o-y to RM1.51 billion.

For FY20, KPJ warned that its performance will be adversely affected by the ongoing global pandemic, which has caused a slowdown both in Malaysia and globally.

In a separate statement, KPJ president and managing director Ahmad Shahizam Mohd Shariff said the group remains cautiously optimistic and will continue to focus on disciplined management of costs and enhancing operational efficiencies.

"For the second half of the year, the group will remain active in providing its core services and adding new areas of services such as telemedicine and home visits while continuously educating the public on the implemented standard operating procedures at all our healthcare facilities to ensure Covid-19 risk are appropriately managed,” he added.

At noon break, KPJ shares ended one sen or 0.61% lower at 82 sen apiece, valuing the company at RM3.51 billion.

Edited by Kang Siew Li