corporate

TMC Life Sciences' 1Q net profit plunges 81pct due to contract, discount cuts

KUALA LUMPUR: TMC Life Sciences Bhd reported a 81 per cent drop in net profit to RM2.9 million for the first quarter ended Sep 30, 2024 of the financial year 2025 (1Q25), on termination of certain customer contracts and discounts given to institutional customers.

It made a net profit of RM15.1 million in the same quarter last year. 

The company's revenue also fell by 11 per cent to RM82 million, down from RM92.4 million.

TMC Life Sciences major shareholders Sasteria Pte Ltd  and Regent of Johor, Tunku Ismail Sultan Ibrahim last week issued special notices to the company to convene an extraordinary general meeting to remove suspended group chief executive officer Wan Nadiah Wan Mohd Abdullah Yaakob as a director in the company.

TMC Life Sciences suspended the employment of Wan Nadiah on Jan 29, 2024, to facilitate an internal disciplinary process relating to six allegations of misconduct

"Compared with the immediate preceding quarter ended June 30, 2024, both revenue and profit before taxation increased by 11 per cent and >100 per cent, respectively.

"The increase was attributed to higher inpatient volume and case intensity in Thomson Hospital Kota Damansara (THKD)," it added.

TMC Life Sciences said the increased capacity in THKD and rebound of fertility business are expected to drive growth.

"Additionally, the group is focusing on diversifying the customer base including international market expansion," it said.

TMC Life Sciences share price closed unchanged at 52.5 sen a share, giving it a market capitalisation of RM914.5 million.

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