Mainboard-listed Thomson Medical Group sinks into the red, reporting a loss for the 1HFY2025 ended Dec 31, 2024 of $12.6 million, as compared to the $4.93 million earnings in 1HFY2024.
This net loss is primarily due to challenges in the Malaysia market, increased interest expenses following the acquisition of Far East Medical Vietnam Limited (FEMVN), and the cessation of non-core transitional care facilities projects in Singapore.
In Malaysia, the group was impacted by the termination and pricing adjustments of certain insurance contracts, which led to a revenue shortfall. The group says they are recalibrating partnership structures to ensure profitability in the Malaysia healthcare market.
In Singapore, the group carried out the cessation of traditional care facilities projects, which it said is not core to its long-term growth strategy. It will focus instead on expanding specialist services, digital transformation and operational excellence.
The group recorded a revenue of $199.1 million for the 1HFY2025, a 18.4% y-o-y increase. This was mainly due to the revenue contribution from Vietnam following the acquisition of FEMVN.
Its gross profit for the period dropped 10.6% y-o-y to $39.5 million.
The group recorded a net decrease in cash and cash equivalents during 1HFY2025 of $28.1 million, mainly due to the purchase of property and equipment amounting to $13.7 million, payments of loan principals and interests and lease liabilities amounting to $250.5 million and dividends paid to non-controlling interests of subsidiaries of $3.8 million.
“While 1H2025 has presented near-term challenges, we continue to optimise our business across our key markets. Our regional presence in Singapore, Malaysia, and Vietnam remains a core strength, and we continue to invest strategically to reinforce our leadership position in Southeast Asia’s healthcare landscape,” said Kiat Lim, Executive Vice Chairman of Thomson Medical Group.
Shares in Thomson Medical Group closed flat at 4.4 cents on Feb 12.
