KUALA LUMPUR: KPJ Healthcare Bhd is divesting its operations in Australia and Indonesia in the next 12 to 24 months as part of its rationalisation plan to boost growth post-Covid-19, president and managing director Datuk Mohd Shukrie Mohd Salleh said.
Overall, the private healthcare group owns six operations overseas including one loss-making Jeta Gardens, an aged care centre and retirement village in Queensland, Australia and two hospitals in Indonesia.
KPJ also has operations in Bangladesh and Thailand.
In 2018, it was reported that KPJ was in talks with an Australian party that was in a similar line of business in relation to the disposal of Jeta Gardens.
Mohd Shukrie said the KPJ board had approved plans to rationalise its overseas operation involving the disposal of at least two businesses namely Jeta Gardens in Australia and its two hospitals in Indonesia.
"For the rest of our operations overseas, we are reviewing them as part of this rationalisation, but what is firm at the moment is these two divestments.
"In terms of opportunities going forward at the moment, we want to consolidate our position in Malaysia to ensure that we strengthen our position," he said in an interview.
Mohd Shukrie said the target this year was for five of its hospitals to be profitable, and six others to be earnings before interest, taxes, depreciation and amortisation (Ebitda) positive.
He added that the group was targeting all of its hospitals to be profitable in 2023.
"In short, as far as our overseas investment is concerned, we want to focus on rationalising on what we have and once things settle down, then we will take it from there."
In the first quarter (Q1) ended March 31, 2022, KPJ's net profit surged 71 per cent to RM22.19 million from RM12.98 million recorded in the same quarter last year.
The growth was supported by its prudent and proactive measures to manage operating costs and preserve margins against the challenging backdrop of the ongoing Covid-19 pandemic.
In Q1, KPJ's revenue increased 7.4 per cent to RM651.02 million from RM605.94 million.
As a result of this strong performance, the company declared a second interim dividend of 0.25 sen per share, with a total aggregate payment of RM11.3 million, to be paid to the shareholders on July 29.
KPJ said it was optimistic that the prospects would improve as the country pivoted to living with and adapting to Covid-19, in addition to the re-opening of international borders and expected revival of the medical tourism industry.