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.

• Interim dividend of 0.40 Singapore cent per share declared, up 150% from 1H2023, with a payout ratio of 39%.

• 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.

• Net asset value increased 5% to $104 million as of 30 June 2024, with net asset value per share rising to 11.0 cents.

• Debt to total equity ratio improved from 0.78 to 0.71 compared to 31 December 2023.

• Net other gains of $1.8 million, mainly from disposal of EM2AI and compensation from settlement and termination deeds.

• Net cash flow from operating activities was $17.3 million; cash and cash equivalents stood at $32.3 million.

Outlook and guidance

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

• Strategic investments in AI, lifelong learning, and ethical dentistry to prepare for future healthcare challenges.

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