SINGAPORE (Feb 27): Q&M Dental Group reported earnings of $18.0 million for FY2019 ended December, some 28% higher than FY2018 earnings of $14.0 million.
This brings the group’s earnings per share (EPS) for the year to 2.29 cents, up from EPS of 1.77 cents a year ago.
Revenue for the year came in at $128.0 million, a 6% increase from $120.8 million in FY2018. This was attributable mainly to higher revenue from the group’s existing and new dental outlets in both Singapore and Malaysia.
In line with the higher revenue, the group’s consumables and supplies expenses as well as cost of sales for dental equipment and supplies increased by 10% and 12% respectively.
Notably, Q&M booked other gains of $8.2 million for the year, a surge from the previous year’s gains of $0.4 million. This came on the back of a one-time gain of $11.6million arising from the partial disposal of 36% of equity-accounted associate, Aidite. The gain was, however, partially offset by allowance for impairment for trade and other receivables.
The group’s share of profit from equity accounted associates decreased by 10% to $4.2million from $4.6 million in FY2018 due primarily to gestation losses from Aoxin Q&M.
As a result, the group’s profit margin for the year was lifted to 14% from 12% in FY2018.
Q&M is proposing a final dividend of 0.42 cents and a special dividend of 2 cents per share for FY2019. Including the interim dividend of 0.4 cents paid in September 2019, the group’s full dividend for FY2019 stands at 2.82 cents per share, up from a total dividend of 0.82 cents per share in FY2018.
The dividend, subject to approval at the group’s forthcoming annual general meeting, is expected to be paid on May 26 after the group’s book closure date on May 12.
As at end-December, cash and cash equivalents stood at $27.3 million.
In 1HFY2020, the group is expecting to commence operations of one new dental clinic in Singapore, and three in Malaysia.
In its outlook statement, the group notes that the current Covid-19 situation remains uncertain and fluid, and is likely to result in both an economic slowdown for Singapore, as well as fluctuations in foreign currency.
“The Group is continuously looking for opportunities to expand its businesses through opening new dental clinics in Southeast Asia,” says Q&M.
“Notwithstanding the current uncertainty and barring any unforeseen circumstances, there are no significant changes in the trends and competitive conditions of the industry in which the group operates and no major known factors or events that may adversely affect the group in the next reporting period and the next twelve months,” it adds.
Shares in Q&M closed one cent higher, or 2.2% up, at 46 cents on Thursday prior to the results announcement.
