Foundation Healthcare H1 profit drops 67.6% to S$1.2 million on higher operating expenses post-IPO
It expects investments in expanded clinic footprint and specialist network to drive future margin growth
Foundation Healthcare Holdings (FHH) announced a significant decline in its first-half net profit, reporting a 67.6% decrease to S$1.2 million, down from S$3.8 million in the same period last year. The company's H1 earnings were impacted by higher operating expenses, acquisition-related costs, and increased capital raising expenses, which rose by 827.2% to S$5.4 million.
Revenue for the period totaled S$129.2 million, up 20.2% year-on-year. The specialist segment contributed S$125.7 million to H1 revenue, driven by growth from existing and acquired practices. Chief Financial Officer Justin Choi attributed the increased operating expenses to the expansion of the clinic footprint, refurbishment of medical centers, and hiring costs.
He emphasized that lower Ebitda margins were intentional investments aimed at future growth capacity. The company expects reopening renovated ambulatory centers in Novena and Orchard to boost patient volumes, as well as partnerships with major insurers. FHH is also exploring opportunities to expand its medical center footprint and is actively seeking established specialist practices for acquisition in the second half of the year.
Employee compensation as a percentage of revenue increased due to the growth in the specialist network. The company is planning further international expansion, with the Malaysia market being "well underway" and other regional markets including Hong Kong in development.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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