Q&M Dental’s Q3 profit down 62% on lower revenue

Q&M Dental Group posted a 62 per cent decrease in net profit to S$3.6 million for the third quarter ended Sep 30.

Revenue fell 26 per cent to S$42.5 million after revenue contribution from the medical laboratory and dental equipment and supplies business decreased 82 per cent to $3.3 million.

The group’s medical laboratory business weakened after the demand for Covid-19 testing in Singapore fell following the economy’s reopening, as well as the reduction on test prices to maintain competitiveness in the market.

Q&M has not declared a third-quarter dividend, citing the need to conserve cash for corporate activities and future expansion “which should be internally funded in light of rising interest rates”. It added it will continue paying down bank loans in Q4.

The group declared a dividend of S$0.01 per share a year ago.

The counter closed at S$0.35 on Friday (Nov 11), up S$0.005 or 1.5 per cent.