Q&M Dental Group has reported earnings of $30.5 million for the FY2021 ended December, 55% higher than FY2020’s earnings of $19.7 million.
The earnings were due to a total revenue surge of 49% y-o-y to $205.6 million during the year, making this the highest-ever revenue recorded for the group.
Segmentally, revenue from Q&M’s dental and medical clinics increased by 27% y-o-y to $160.2 million due to higher revenue from its existing and new dental clinics in Singapore.
Revenue from medical laboratory and dental equipment & supplies spiked by 304% y-o-y to $45.4 million, mainly due to revenue from the group’s Covid-19 medical laboratory business.
Q&M obtained its medical laboratory license from the Ministry of Health (MOH) in September 2020.
FY2021 EBITDA correspondingly increased by 68% y-o-y to $63.3 million.
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FY2021 net profit after tax (NPAT) surged by 98% y-o-y to $39.4 million.
In FY2021, earnings per share (EPS) increased to 3.23 cents from 2.09 cents in the year before.
During the 4QFY2021, however, Q&M Dental Group saw earnings fall 47% y-o-y to $3.2 million.
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4QFY2021 revenue grew 22% y-o-y to $53.3 million. On the other hand, cost of sales from the group’s medical laboratory and dental equipment & supplies increased by 202% y-o-y to $4.7 million, due to the higher increase in revenue for its Covid-19 medical laboratory business.
As a percentage of revenue from medical laboratory, cost of sales used in medical laboratory in 4Q21 was 48% compared to 51% in 4QFY2020.
Employee benefits expense increased by 22% y-o-y to $30.2 million mainly due to the higher revenue from its new and existing dental outlets in Singapore.
As a percentage of revenue, employee benefits expense in 4Q21 was 56.7% compared to 56.5% in 4QFY2020.
As at end-December, the group has a total of 136 dental clinics, from the 118 in FY2020.
The group’s number of medical clinics in Singapore remained unchanged at 5, while its dental clinics grew to 97 from 83 in the year before.
Overseas, the group’s dental clinics stood at 39 in FY2021, from 35 in the year before, with 38 clinics in Malaysia and one in China.
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As at end-December, cash and cash equivalents stood at $47.6 million.
A fourth interim dividend of 1.0 cent per ordinary share has been declared for the 4QFY2021, bringing the total dividend for FY2021 to 4.0 cents per share.
According to the group, this translates to a dividend yield of 7% based on the group’s share price of 56.5 cents as at 2.45pm on Feb 22. The dividend for the 4QFY2021 will be paid on March 24.
In its statement on Feb 23, the group says it will continue to focus on investment opportunities in sectors that are “synergistic and aligned” with its business strategy.
For Acumen Diagnostics, Q&M will continue to offer Covid-19 polymerase chain reaction tests (PCR) for patients who require them, as well as for travellers as Singapore opens its borders.
It will also continue distributing Covid-19 antigen rapid tests (ART), as well as launch a panel of new PCR tests for infectious diseases, sepsis and cancer.
Group CEO Dr Ng Chin Siau says the group will embark on four pillars of growth.
The first, is its expansion of its core dental business in Singapore, Malaysia, Southeast Asia and China “for sustainable growth”.
“Our group intends to open at least 30 dental clinics a year from 2021 onwards in Singapore and Malaysia for the next 10 years,” says Dr Ng.
“Secondly, the use of medical technology such as our proprietary Artificial Intelligence Guided Clinical Decision Support System to provide the most effective and suitable treatment plans for patients This will enable us to scale up consistency and quality throughout our network clinics,” he adds.
In its third pillar of growth, the group is also looking at expanding its clinical testing laboratory business to test Covid-19 and other diseases such as dengue sepsis and other bacterial pathogens.
The final pillar is in investing in medical and healthcare business such as Acumen Diagnostic that will enhance the group’s shareholder’s value, continues Dr Ng.
Shares in Q&M Dental closed 1 cent lower or 1.72% down at 57 cents on Feb 22.
Photo: Bloomberg
