Family practice dermatology and aesthetic medical services provider Niks Professional announce that its FY2023 ended Dec 31, 2023 earnings declined by 39.0% y-o-y to $1.7 million, compared to $2.8 million a year ago.
This is the group’s first final year results report as a SGX-listed company. The group went public in October 2023. Its IPO was priced at 23 cents per share.
Excluding one-off IPO-related expenses and income, FY2023 adjusted net profit would have been $2.47 million, as compared to $3.15 million for FY2022, a decline of 21.4%.
Revenue for the full year was 2.2% lower y-o-y at $10.9 million from $11.1 million a year ago. This is attributable to a decrease in revenue from the headquarters segment, driven by lower sales from China, as a result of lower consumer confidence and hence, demand for the group’s products, as the ongoing economic uncertainty crimped consumer spending on non-essential items in China.
This was partially offset by an increase in revenue from the clinics segment and retail segment in Singapore. The group intends to build on its footprint in Singapore to drive growth prospects
In a previous interview with The Edge Singapore, the group said that FY2022 was a slow year, as several clients travelled overseas and postponed their doctors’ appointments and facial treatments. China was also still under lockdown in 2022, which affected its financials. Additionally, one of the key doctors took an extended break in FY2022.
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For the 2HFY2023 period, revenue was 0.8% higher y-o-y at $5.5 million, while earnings were 50.5% lower y-o-y at $591,000.
Cash and cash equivalents as at end-December 2023 stood at $9.1 million.
The board has proposed its first final dividend of 1.0 cent per share, representing 77.1% of FY2023 earnings. Based on the latest close of 18.5 cents on Feb 27, the dividend yield would be 5.4%.
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Cheng Soong Tat, chairman and CEO of Niks Professional says: “Like most businesses operating there, we were disappointed that China did not pick up last year following the dismantling of Covid-19 controls. Instead, consumer spending was unexpectedly cautious. However, we are beginning to see some green shoots this year and we are cautiously optimistic that 2024 will be a better year. This is why we are ramping up our efforts in China, including establishing a significant presence in its e-commerce marketplaces.
Looking forward, the group has hired a new doctor, who will begin work in March 2024. This being the medical team to a total of six. The group is also in the midst of opening a fourth clinic in the north of Singapore, which is expected to be operational by mid-2024.
The group also looks forward to adding imaging, hair treatment and body contouring machines to its clinics and salons this year to generate incremental revenues. Enhancements in information technology, including a mobile phone app to facilitate transactions (including in-app consultation and medicine refill) between patients and customers and its clinics and retail outlets, will also bring greater convenience and potentially higher spending.
In China, the group has currently 12 agents and appointed a Deputy General Manager for sales and marketing in its China subsidiary to recruit sales agents. The group will also be boosting its e-commerce presence in China.
Shares in Niks Professional has declined since its listing to trade at 18.5 cents on Feb 27.
