Q&M Dental Group on Friday posted a 28 per cent rise in first-quarter net profit attributable to owners of the parent to S$3.7 million, due mainly to higher revenue which was partly offset by a rise in expenses.
Earnings per share for Q1 2016 was 0.47 Singapore cent.
Revenue from the dental and medical clinics rose 28 per cent to S$28.3 million, mainly due to higher revenue from existing and new dental outlets in Singapore, and revenue contribution from various acquisitions.
These are: Panjin City Jingcheng Group of Clinics, Panjin City Jinsai Dental Clinic and Gaizhou Zhuoye Dental Clinic acquired in January 2016; acquisitions of TP Dental Surgeons Pte Ltd, Tiong Bahru Dental Surgery Pte Ltd and Bright Smile Dental Surgery Pte Ltd last September; acquisition of Aesthetics Dental Surgery Pte Ltd last November; and purchase of Lee & Lee (Dental Surgeons) Pte Ltd in March 2016.
Revenue from the dental equipment and supplies distribution business slid 5 per cent to S$2.4 million, mainly due to lower revenue from dental equipment and supplies distribution company in Malaysia.
Revenue from the dental supplies manufacturing business fell 16 per cent to S$3.7 million, largely due to lower revenue from Aidite, a dental supplies manufacturing company in China.
Consumables and supplies used increased 34 per cent to S$2.3 million, mainly due to higher revenue from existing dental outlets, a rise in purchase price of consumables in Singapore, and various acquisitions.
Employee benefits expense also went up 23 per cent to S$17.3 million, in line with the increase in revenue from existing and new dental outlets in Singapore, as well as the higher headcount from more outlets.
In its outlook, the group said it is "continuously looking for opportunities to expand its businesses through acquisitions, joint ventures or strategic alliances with parties who create synergistic value with its existing business in Singapore, Malaysia and China".
In a separate filing with Singapore Exchange on Friday, the group said Ng Jet Wei will step down as executive director and deputy CEO with effect from May 15 to pursue other interests. He will continue his practices as a dentist at the group's dental centre in City Square Mall.