IHH Healthcare Berhad (IHH) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue grew 6%-7% year-over-year to RM6.3b, driven by higher inpatient admissions, price adjustments, and the consolidation of Island Hospital.

• Diversified platform and operational excellence initiatives supported resilience and growth across geographies despite FX volatility and payer pressure.

• EBITDA margin remained stable at 22%, with PATMI margin at 8% (ex-EI, ex-MFRS 129); robust balance sheet and strong cash flow support ongoing transformation.

• Continued expansion with new hospital openings and acquisitions in Turkey and India, and digital transformation projects across markets.

• Sustainability initiatives advanced, including emissions reduction and inclusion in FTSE4Good indices.

Financial highlights

• Q1 2025 revenue: RM6.3b (+6%-7% YoY, ex-MFRS 129); EBITDA: RM1.4b (-1% YoY, ex-MFRS 129); PATMI (ex-EI): RM521m (-11% YoY, ex-MFRS 129).

• On a constant currency basis, revenue and EBITDA increased 17% and 8% YoY, respectively.

• PATMI margin (excluding exceptional items) at 8% in Q1; high 2024 base due to one-off Turkish tax credit not repeated this year.

• Cash and cash equivalents at RM1.5b as of 31 March 2025; strong operating cash flow and RM485m dividends paid in April 2025.

• Loans and borrowings increased to RM13.7b to fund expansion and acquisitions.

Outlook and guidance

• Expect stronger performance in H2 2025 as Mount Elizabeth Orchard reopens and payer negotiations conclude.

• Maintain EBITDA margin guidance of 22%-24% and PATMI (ex-EI, ex-MFRs) at 8%-10%.

• Plans to add over 4,000 beds (+33% capacity) by 2028 to meet rising patient demand.

• Ongoing investments in digitalisation, new care models, and expansion across the healthcare continuum.

• Positive outlook for Hong Kong to achieve PATMI positive in 2025.