KPJ Healthcare Berhad - Annual Report 2018

OUR BUSINESS & STRATEGY OUR PERFORMANCE AND OUTLOOK OUR RESULTS OUR GOVERNANCE APPENDICES ABOUT THIS REPORT 59 KPJ HEALTHCARE BERHAD www.kpjhealth.com.my GROUP FINANCIAL PERFORMANCE 2018 Despite this challenging backdrop, KPJ had a year of record performance, posting our highest revenue and profit to date. We recorded double digit growth, underpinned by solid overall performance. Our key drivers have been the Group’s sustained improvements in operational efficiencies and strict cost discipline. Revenue increased by 4% to RM3.3 billion, from RM3.2 billion in 2017, driven by increased contributions from our Malaysian hospital operations. This was primarily due to an increase in patient visits, as well as growth in the number of operating beds and surgeries performed, especially at KPJ Rawang, KPJ Bandar Maharani and KPJ Pasir Gudang. The stronger position led to a Earnings before interest tax, depreciation and amortisation (EBITDA) growth of 18%, from RM428.0 million in 2017, to RM503.1 million in 2018. Profit before zakat and tax (PBZT) stood at RM266.5 million in 2018, compared to RM233.3 million the previous year. The Group posted net profit of RM186.2 million, a 12% increase from RM166.9 million the previous year. For a complete financial review of our performance, please refer to our Chief Financial Officer’s Review on pages 66 to 68 of this IR. TURNAROUND OF NEW HOSPITALS Over the past five years, KPJ has been expanding our network of hospitals. This includes seven new hospitals in greenfield and brownfield locations throughout Malaysia. Achieving profitable hospital turnaround is not an easy task, and therefore 2018 was a particularly good year for KPJ, as two hospitals we had launched in 2014 achieved profit turnaround, namely, KPJ Rawang and KPJ Maharani where each posted a full year THE STRONGER POSITION LED TO AN EARNINGS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (EBITDA) GROWTH OF 18%, FROM RM428.0 MILLION IN 2017, TO RM503.1 MILLION IN 2018. DATO’ AMIRUDDIN ABDUL SATAR PRESIDENT & MANAGING DIRECTOR PRESIDENT & MANAGING DIRECTOR’S REVIEW