Shares of Raffles Medical (BSL.SI) plunged 7.18% in intraday trading on Monday following the release of the company's Full Year 2024 financial results. The sharp decline comes as investors react to a significant drop in profitability, despite revenue growth beating expectations.

The healthcare provider reported a 6.3% increase in revenue to S$752.4 million for the fiscal year 2024, surpassing analyst estimates by 1.9%. However, the company's bottom line took a substantial hit, with net income falling 31% to S$62.2 million. This resulted in earnings per share (EPS) of S$0.034, down from S$0.048 in the previous year and missing analyst expectations by 8.6%.

The decline in profitability can be attributed to a significant contraction in the company's profit margin, which fell from 13% in 2023 to 8.3% in 2024. Raffles Medical cited higher expenses as the primary driver for the margin squeeze. The disappointing earnings results, particularly the sharp drop in net income and EPS, appear to be the main factors behind today's stock price plummet as investors reassess the company's near-term growth prospects and profitability.