Catalist-listed Singapore Medical Group (SMG) has reported earnings of $7.2 million for the 1HFY2021 ended June, an increase of 108.2% y-o-y.
This translates to earnings per share (EPS) of 1.49 cents for the 1HFY2021, compared to 0.79 cents the year before.
Total revenue for the period came in at $49.7 million, up 27.6% y-o-y from $38.9 million previously, due to a rise in demand for the group’s Health and Diagnostics and Aesthetics services for 1HFY2021 as compared to 1HFY2020 where operations were significantly curtailed due to the Circuit Breaker (“CB”) period in Singapore from April to June 2020.
Revenue from the group’s Diagnostic and Aesthetics segment surged 76.5% y-o-y to $19.8 million driven by rising demand for aesthetics, LASIK and diagnostic imaging-related services. Similarly, the Group’s Health segment recorded topline growth of 8.7% y-o-y to $30.5 million despite the severe curb of medical tourism which historically accounted for 15% to 20% of the group’s overall revenue.
See also: SMG reports record 1Q21 revenue and net profit on higher diagnostic & aesthetics business
Gross profit increased 40% y-o-y for the 1HFY2021 to $22.3 million, while pbt increased 118.4% y-o-y to $8.9 million.
The group reported positive operating cash flows of $9.8 million for the 1HFY2021, with a cash balance of $24.7 million as at June 30. After accounting for total borrowings amounting to S$6.5 million, the group’s net cash position improved to $18.1 million, while gearing levels stood at 4.1%, decreasing from 6.4% as of Dec 31, 2020.
“Following a challenging 2020, we continued to face uncertainty amid the pandemic and the various phases of restrictions. Furthermore, we continued to be weighed down by the absence of medical tourism. Nevertheless, the diversified nature of our operations today ensured that we were able to take advantage of structural shifts in demand for key specialist verticals such as diagnostics and aesthetics,” says executive director and CEO Dr. Beng Teck Liang.
The group is looking to strengthen its position as a private specialist healthcare provider within the women’s and children’s space through the hiring of new O&G specialists and paediatricians in addition to the opening of new clinics. Today, the Group’s flagship women’s health centre is located at Mount Elizabeth Specialist Centre in Novena with a network of 14 specialist clinics which extend across the heartlands.
The group has also increased the capacity of its diagnostic services with the addition of a new Magnetic Resonance Imaging (MRI) machine at its Novena imaging centre which effectively increases the group’s MRI capacity by more than 20% as of May 1.
On its overseas investments, SMG reported that two of its overseas entities, CityClinic Asia Investments in Vietnam and PT Ciputra SMG in Indonesia have been impacted by record numbers of Covid-19 cases and lockdowns within both countries. Challenging business conditions are expected to persist in the near term as both countries grapple with the pandemic.
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In Australia, the group's partnership with CHA Healthcare and City Fertility, one of Australia’s largest IVF & fertility service groups has continued to gain traction. City Fertility is in the final stages of closing an earnings accretive acquisition which will expand its footprint in Western Australia where City Fertility currently has no presence.
For 1HFY2021, the group reported a turnaround of its share of results of joint ventures amounting to $0.2 million as compared to a loss of $20,000 for 1H2020. The turnaround was driven by rising levels of profitability in Australia and Indonesia offset by losses incurred in Vietnam.
Shares in SMG closed flat at 32.5 cents on August 2.
