Staff costs are up from 49% at 1HFY2022 and 50% at 2HFY2022. “Going forward, we have adjusted our occupancy rates and staff/operational costs’ assumptions and trimmed our FY2023/FY2024 earnings downwards by 18%/12% respectively,” write Sim and Yong.
Watch for headwinds Econ Healthcare (Asia) Limited, as staff costs weigh on revenue and net profit in 1HFY2023 ended September, write DBS Group Research analysts Andy Sim and Paul Yong.
The nursing home provider’s 1HFY2023 revenue and net profit fell short due to a slower-than-expected ramp-up in occupancy at Econ’s Singapore operations and higher staff costs at some 54%, note Sim and Yong in a Nov 10 note.
