BH Reports a Fall of Profit by 25% in 2Q2019 from the Post-Employee Benefits
BH Reports a Fall of Profit by 25% in 2Q2019 from the Post-Employee Benefits
Bumrungrad Hospital Public Company Limited (BH) has reported its 2Q19 consolidated financial statement through the Stock Exchange of Thailand as follows:
The net profit of BH for 2Q19 decreased by 25.4% to THB 725 million from THB 972 million in 2Q18, with a net profit margin at 16.7% in 2Q19, compared to 22.5% in 2Q18. BH reported total revenues in 2Q19 of THB 4,348 million, a 0.9% increase from 2Q18 revenues of THB 4,309 million. Total revenues for 1H19 increased to THB 9,082 million, or 0.9% more than THB 9,003 million in 1H18.
The net profit for 1H19 decreased by 11.9% to THB 1,806 million in 1H19 from THB 2,051 million in 1H18, with a net profit margin at 19.9% in 1H19 compared to 22.8% in 1H18.
The net profit for 2Q19 and 1H19 included a one-time adjustment of THB 146 million (THB 117 million after-tax) related to additional Thai severance for employees who have worked for an uninterrupted period of twenty years or more, with such employees entitled to receive not less than 400 days’ compensation (previously 300 days’ compensation) at the latest wage rate, according to the new Thailand Labor Protection Act.
An additional ongoing expense of THB 3.6 million (THB 2.8 million after-tax), relative to the above change, was recorded for May and June 2019, bringing the total impact of this change to THB 150 million (THB 120 million after-tax) for 2Q19 and 1H19. The ongoing impact for full subsequent quarters is estimated to be THB 5.3 million (THB 4.2 million after-tax) per quarter. The details of this change in the law are presented in the Extraordinary Item section of this document. Excluding the above one-time adjustment of THB 146 million (THB 117 million after-tax), Net profit for 2Q19 decreased by 13.3% to Baht 842 million from Baht 972 million in 2Q18, with a Net profit margin at 19.4% in 2Q19, compared to 22.5% in 2Q18. Net profit for 1H19 adjusted for the above one-time item decreased by 6.2% to Baht 1,923 million from Baht 2,051 million in 1H18, with a Net profit margin at 21.2% in 1H19, compared to 22.8% in 1H18.
