Q & M Dental Group (Singapore) (QC7) H1 2024 earnings summary

Executive summary

• Revenue rose 2% year-over-year to $88.8 million for 1H24, driven by higher dental clinic contributions in Singapore, offset by lower profit guarantee and medical lab revenues.

• Net profit surged 78% year-over-year to $10.2 million, with profit attributable to owners up 84% to $9.8 million.

• EBITDA increased 27% to $23.4 million, and basic EPS nearly doubled to 1.04 cents.

• The group maintained a strong cash position of $32.3 million and reduced total borrowings.

Financial highlights

• Dental and medical clinic revenue grew 4% to $82.2 million, while medical lab and dental equipment revenue fell 20% to $6.6 million.

• Other gains of $1.8 million included a gain on disposal of EM2AI and compensation from ex-vendors.

• Consumables and supplies costs remained stable; cost of sales for medical lab/equipment dropped 25% to $3.0 million.

• Depreciation and amortisation expense rose 4% to $2.5 million; finance costs decreased 3% to $2.7 million.

• Net asset value per share increased to 11.0 cents from 10.5 cents at year-end 2023.

Outlook and guidance

• No significant changes in industry trends or competitive conditions are expected in the next 12 months.

• The group plans to continue expanding its dental clinic network in Singapore and the Asia Pacific region, focusing on organic growth and digital clinical support systems.