[SINGAPORE] Healthcare provider Thomson Medical has swung into the red with a net loss of S$34.7 million for its six months ended Jun 30, compared with a net profit of S$12.1 million in the previous corresponding period.
This came despite a 6.9 per cent uptick in revenue to S$195.6 million for the second half of the 2025 financial year, from S$183 million in H2 FY2024, its financial statement released on Friday (Aug 29) showed.
The biggest blow to the group’s bottom line came from its other operating expenses line item: a loss that widened to S$119.4 million in the half-year period from S$40.5 million in the same period in the prior year.
Thomson Medical attributed this to a one-off impairment loss on goodwill arising from the acquisition of its Vietnam unit.
The mainboard-listed company acquired in December 2023 Far East Medical Vietnam – the owner and operator of a range of healthcare facilities in Vietnam, including a multidisciplinary hospital and a chain of clinics.
The deal was hailed as the largest healthcare acquisition in South-east Asia since 2020.
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A loss per share of S$0.00131 for the six-month period was reported, compared with the earnings per share of S$0.00046 in the year-ago period.
No dividend was declared for the period, on account of conserving cash for working capital needs and the funding of potential growth opportunities, said the group.
On its revenue growth for the half-year, the healthcare provider attributed it to increasing revenue intensity in Singapore, contributions from its newly opened oncology centre in Malaysia, as well as a favourable exchange rate that bumped up its translated revenue from Malaysia.
Yet, the gains were partially offset by higher discounts given to customers, the termination of select customer contracts in Malaysia, and a lower patient load in Vietnam.
Staff costs for the half-year also inched up by 4.1 per cent compared with that in the same period last year. This was because the group increased its Malaysia headcount to accommodate the planned increase in operating capacity at Thomson Hospital Kota Damansara.
Full-year figures
Thomson Medical was also in the red for the full year, reporting a net loss of S$47.6 million, compared with a net profit of S$14.2 million in FY2024.
This followed a 12.4 per cent growth in revenue for the full year to S$394.7 million, from S$351.2 million previously.
A loss per share of S$0.0018 for the full year was declared, as opposed to earnings per share of S$0.00054 in the year before.
Notably, its revenue from Singapore fell 4.9 per cent, while that from Malaysia climbed 5.2 per cent.
Thomson Medical attributed the revenue decrease from Singapore to the ending of project-related services, such as managing transitional care facilities.
Revenue growth in Malaysia was driven by the contributions from its new oncology facility and a favourable exchange rate.
The healthcare provider, which is controlled by Singapore tycoon Peter Lim, has been grabbing the headlines in the past week.
After unveiling on Monday its Johor Bay mega project that boasts a projected gross development value of more than RM18 billion (S$5.5 billion), the group saw its counter shoot up 22.4 per cent to close Tuesday at its highest price in more than a year.
Looking ahead
On its outlook, Thomson Medical noted that it expects to continue incurring losses over the next 12 months as it invests in its strategic initiatives for FY2026.
These priorities include enhancing cross-border synergies, advancing digital health innovation and pursuing sustainable expansion, said the group.
Going by geography, the company noted that Vietnam’s healthcare expenditure is projected to rise, buoyed by a growing middle class, an ageing population and government-led infrastructure investments.
Its FV Hospital there will add a new wing by end-2027, and broaden its social health insurance coverage, improve affordability through a medical instalment programme, as well as reinforce oncology leadership with technology investments, it added.
It expects growth in Malaysia to be led by Thomson Hospital Kota Damansara, supported by the development of Thomson Hospital Iskandariah – which is targeted for completion by 2030.
The healthcare provider intends to continue investing in strategic cross-border collaborations, highlighting its partnership with OncoCare across Singapore and Malaysia.
In Singapore, the group will expand its footprint by growing Thomson Specialists across key outpatient and surgical services, and strengthening Thomson Fertility in reproductive care.
It added in its financial report that its partially owned Thomson Women Cancer Centre was dissolved in FY2025.
Shares of Thomson Medical closed Friday at S$0.061, down S$0.002 or 3.2 per cent.
