IHH Healthcare Berhad (IHH) Q2 2025 earnings summary

Executive summary

• Q2 2025 delivered resilient financial performance with revenue and EBITDA growth on a constant currency basis, despite macroeconomic challenges, FX volatility, and hyperinflationary effects in Türkiye.

• PATMI (excluding exceptional items) declined 4% year-over-year, mainly due to lower net monetary gain from hyperinflationary economies and absence of deferred tax credits.

• Interim dividend of 5 sen (or $0.05) declared, up from 4.5 sen last year, reflecting confidence in robust fundamentals and balance sheet.

• Occupancy rate stood at 68%, with inpatient admissions up 4% and lab tests up 7% year-over-year.

• Transformation initiatives, including digitalization and operational efficiencies, are underway to drive long-term value.

Financial highlights

• Q2 2025 revenue reached RM6.4b (constant currency), up 7% year-over-year; EBITDA at RM1.4b, up 11%; reported revenue up 3% to RM6,298 million, EBITDA flat.

• Year-to-date, revenue up 5% to RM12,592 million, EBITDA down 1% to RM2,697 million; constant currency growth higher at 10% for revenue and 17% for EBITDA.

• PATMI (ex-EI) was RM518m in Q2, up 2% year-over-year on constant currency; reported PATMI was RM443m, down 29% due to hyperinflation and tax effects.

• EBITDA margin ex-MFRS at 22% in Q2, within guidance of 22%-24%.

• Net assets per share increased to RM3.45 as at 30 June 2025.

Outlook and guidance

• Cautiously optimistic for the remainder of 2025, supported by robust financial position and ongoing operational improvements.

• Integration of recent acquisitions (Island Hospital, Bayindir Healthcare Group, Shrimann Superspeciality Hospital) is underway to create synergies and long-term value.

• Mount Elizabeth Orchard in Singapore to complete phased reopening by Q3 2025, increasing bed capacity.

• Strategic priorities include organic growth, expanding bed capacity by 4,000+ over six years, and growing ambulatory and diagnostic services.

• The Group remains well-positioned to navigate economic and geopolitical headwinds, anchored by strong fundamentals and healthcare megatrends.