Q&M Dental posts 7% rise in Q1 revenue, declares S$0.004 per share dividend

TOTAL revenue for Q&M Dental Group (Singapore) ticked up by 7 per cent to about S$46.8 million in the first quarter ended Mar 31, 2022, from S$43.8 million in the year-ago period.

Net profit slumped 31 per cent year on year to S$6.5 million, from S$9.4 million previously, according to the mainboard-listed private dental healthcare group’s results on Wednesday (May 11) night.

However, excluding other gains, net profit after tax attributable to shareholders increased by 26 per cent to S$6.5 million for the quarter, compared with around S$5.2 million a year ago.

Q&M : QC7 0% noted that other gains had decreased in Q1 2022 due to the absence of a one-time gain on the disposal of an associate, Aidite, in the corresponding period last year.

The company declared an interim dividend of S$0.004 per ordinary share for the first quarter of this year, to be paid on Jun 3, 2022. This is lower than the first interim dividend of S$0.01 per share declared for Q1 2021.

Revenue contribution from dental and medical clinics fell by a marginal 2 per cent to S$38.6 million for the latest quarter, “despite the challenges of the safe management measures due to the rapid spread of the Omicron (Covid-19) variant”, Q&M said. There were fewer patient visits, and some of the group's nurses and dentists were also sick amid high Covid-19 rates in Q1 2022.

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However, this impact was offset by the organic growth of opening new clinics. As at Mar 31, the group’s number of dental outlets in Singapore had grown to 99, from 85 a year ago. In Malaysia, there were 41 dental outlets, up from 36 previously.

Q&M on Wednesday said it intends to continue executing its business plans, which include expanding the network of dental clinics in Singapore and Malaysia; expanding into the private dental healthcare market in China; expanding in South-east Asia; and rolling out a clinical testing laboratory pipeline of new tests.

Shares of Q&M were up S$0.005 or 1 per cent to finish at S$0.495 on Wednesday, before it announced the financial results.