Q&M Q1 profit rises to S$9.4m on one-off divestment gain

Q&M Dental Group (Singapore) posted a net profit of S$9.4 million in the first quarter - about seven times higher than the year-ago period - largely due to a one-off gain on its divestment of Aidite (Qinhuangdao) Technology earlier in January.

Total revenue stood at S$43.8 million for the quarter ended March 31, 2021, 47 per cent higher than the year-ago period.

Earnings per share came in at 1.2 Singapore cents, with an interim dividend of one cent per share declared for the quarter, said Q&M in an update on Friday evening.

Key operating expenses rose 37 per cent to S$33.2 million, from S$24.2 million in the year-ago period. These include consumables and supplies used, cost of sales of dental equipment and supplies distribution, cost of sales of test kits and laboratory tests, employee benefits expense and depreciation of right-of use assets.

About 89 per cent of the group's Q1 revenue came from its core business of dental and medical clinics, with the remaining 11 per cent from dental equipment and supplies distribution.

The group currently has 85 dental outlets in Singapore, 36 in Malaysia and 17 in China. It said it aims to expand further in Malaysia, especially in Johor and Klang Valley, and will continue to monitor the Malaysian economy closely.

Shares of Q&M closed down one Singapore cent or 1.5 per cent to 68 cents on Friday.