KUALA LUMPUR (May 18): Apex Healthcare Bhd’s net profit for the first quarter ended March 31, 2022 (1QFY22) surged 32.76% to RM15.77 million, from RM11.88 million a year ago, underpinned by higher sales revenue achieved by its operating subsidiaries.

Meanwhile, Apex Healthcare’s quarterly revenue rose 20.3% to RM215.92 million as compared to RM179.49 million in 1QFY21, driven by private sector demand for cough and cold products induced by the Omicron Covid-19 variant — which it said manifested largely as a community respiratory illness.

The group said its improved net profit was also attributed to an improved contribution from its associate company Straits Apex Group Sdn Bhd of RM860,000, a 153.1% increase as compared to a year ago.

“In January and February, production output was again dampened by workforce Covid-19 infections and exacerbated by persistent supply chain disruption for certain components and services. Production output has since improved,” it added.

Moving forward, Apex Healthcare said prospects of maintaining recovery are dampened by the repercussions of a protracted war between Ukraine and Russia. 

“This is expected to worsen supply disruptions, and add further inflationary pressures to already elevated freight, energy and raw material prices. The risks of slowing global economic growth have risen considerably and the business environment is likely to present greater challenges than in 2021,” it added.

However, Apex Healthcare said it will continue to step up its efforts to mitigate such risk, stay focused on its proven fundamentals, as well as be positioned to seize new growth opportunities when presented.

“Further unforeseen market changes and developments aside, the group aims to deliver a satisfactory performance in 2022 amidst the circumstances and remains confident that its longer-term growth prospects remain positive,” it added.

Apex Healthcare’s share finished nine sen or 3.04% higher at RM3.05 on Wednesday, giving the group a market capitalisation of RM1.45 billion.