SINGAPORE (Aug 14): Q&M Dental Group saw its earnings grow 4% to $4.8 million for the 2Q19 ended June, from $4.6 million a year ago.
2Q19 revenue rose 3% to $30.5 million, from $29.5 million a year ago.
This was led by higher revenue contribution from dental and medical clinics, which increased by 3% to $27.9 million on higher revenue from dental outlets in Singapore and Malaysia.
As at end June, the group has 73 dental outlets and four medical outlets in Singapore, as well as 20 dental outlets in Malaysia and one dental outlet in China.
This represents an increase of two dental outlets in Singapore and six dental outlets in Malaysia compared to a year ago.
Revenue contribution from the dental equipment and supplies distribution business increased by 6% to $2.6 million, mainly due to higher revenue from the dental equipment and supplies distribution company in Malaysia.
Employee benefits expense increased by 6% to $17.6 million in 2Q19 mainly due to increase in headcount to support more dental outlets in Singapore and Malaysia as well as amortisation of sign on bonus for dentists.
As at end June, cash and cash equivalents stood at $22.2 million.
The board has declared an interim dividend of 0.4 cents per share for 1H19, the same as a year ago, to be paid on Sept 13.
“The 2nd quarter saw the identification and acquisition of 14 locations for new clinics in Singapore and Malaysia, as part of the long term plan of organic growth,” says group CEO Dr Ng Chin Siau. “Together with the ongoing recruitment of dentists and the progress in developing AI-enhanced guided treatment plan, the foundation for long-term revenue growth has been strengthened.”
Shares in Q&M closed 1.5 cents lower, or down 3.2%, at 45.5 cents on Wednesday before the results announcement.
