Dental clinic operator Q&M announced that its 3QFY2022 earnings have declined by 62% y-o-y to $3.6 million from $9.5 million a year ago. This brings earnings per share to 0.38 cent per share, compared to 1.01 cent per share last year.
This comes on the back of total revenue decreasing by 26% to $42.5 million from $57.7 million in the previous year. This was mainly due to an 82% y-o-y decline in the group’s medical laboratory and dental equipment & supplies segment which saw revenue drop by 82% y-o-y to $3.3 million, with less demand for Covid-19 testing in Singapore after the opening of the Singapore economy which no longer requiring extensive Covid-19 testing, as well as the reduction on Covid tests prices to maintain competitiveness in the market.
On the other hand, revenue from dental and medical clinics remained flat y-o-y at $39.2 million during the third quarter.
On a 9MFY2022 basis, earnings were 51% lower y-o-y at $13.5 million, while revenue was 12% lower y-o-y at $133.4 million.
As at end Sept, the group has 106 dental outlets, five medical outlets and one dental college in operations in Singapore. Elsewhere, it has 45 dental outlets in Malaysia and one dental outlet in China.
During the period, cash and cash equivalents stood at $36.5 million.
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The group did not declare any dividends this period, as compared to 1.0 cents declared last year. The group said this was because it is conserving cash for corporate activities and future expansion which should be internally funded in the light of rising interest rate. In 4QFY2022, the group says that it will continue to pay down the bank loans.
Dr Ng Chin Siau, CEO of Q&M says: “Our core healthcare business remains resilient with good prospects for growth. Revenue has come in above $40 million for the eight consecutive quarters and it will continue to be the key contributor to the group’s revenue and profitability going forward.”
Meanwhile, with the group’s strategic investments in Artificial Intelligence (AI) for its dental business, Dr Ng adds: “The future of dentistry lies in combining the dentist's domain expertise and valuable experience with AI's data-centric analysis and ability to generate holistic dental healthcare plans that are specifically tailored to individual needs. This results in better patient management outcome and care which are the main objectives of all medical practice”
With that, Dr Ng is “cautiously optimistic” on the outlook if its core healthcare business.
Shares in Q&M last traded 1.45% higher on Nov 11 at 35 cents.
Photo: The Edge Singapore/ Albert Chua
