Adventa fourth quarter profit dives 81%

PETALING JAYA: Adventa Bhd reported an 81.4% slump in net profit to RM141,000 for the fourth quarter ended Oct 31, 2016 against RM757,000 in the previous corresponding period, due to higher operating and marketing expenditure for the home dialysis services business.
Revenue was up 5.2% from RM10.05 million to RM10.57 million.
In a filing with the stock exchange, Adventa said its home dialysis business incurred a loss of RM3.27 million this year, primarily due to the launch of the new segment and advertisement costs.
“This is expected to change with greater patient numbers. As a full service provider, this pay-for-service model is typically cost heavy upfront,” it noted.
For the full year, Adventa’s net profit plunged 78.3% from RM3.09 million to RM670,000 on the back of a 4.7% drop in revenue from RM41.88 million to RM39.93 million.