OUE Lippo Healthcare reversed to $2.31m profit in 2019

The inclusion of its interest in First REIT boosted the profits from its investees.

OUE Lippo Healthcare reversed to a $2.31m (S$3.24m) profits in 2019, from an $6.27m (S$8.79m) loss in 2018, the company announced. Revenue edged up less than 1% to $14.02m (S$19.65m) from $13.96m (S$19.56m) over the same period.

In Q4, profit rose to $1.83m (S$2.57m) compared to $856,420 (S$1.2m) in Q4 2018, whilst revenue grew 10% YoY to $3.65m (S$5.12m) from $3.31m (S$4.64m) over the same period.

The group’s share of profits of equity-accounted investees jumped 32% to $5.21m (S$7.3m) during the year, mainly due to the full-year inclusion of the group’s interest in First REIT and its manager, Bowsprit Capital Corporation completed in October 2018.

Meanwhile, its finance costs fell 16% to $6.73m (S$9.43m) mainly as a result of the repayment of a high interest loan in 2018 as well as a reduction in average outstanding loan balances.

The stable revenue during the year was attributed to the stable nature of its income from its 12 nursing homes in Japan. The group’s revenue during the year also comprised revenue from its pharmaceutical distribution business in China.