Q&M Dental Group posts 33% rise in Q2 profits on higher revenue

SINGAPORE - Steady growth at its clinics helped Q&M Dental Group log higher revenue and earnings for the three months to June 30.

The dental healthcare group said on Monday its second-quarter net profit rose 33 per cent over the previous year to $1.2 million, while revenue climbed 28 per cent to $20.3 million in the period.

Revenue from the group's dental and medical clinics increased 17 per cent to $18.4 million, due to both increased business at its existing clinics as well as contributions from new dental and medical outlets in Singapore and Malaysia.

Meanwhile, revenue from its dental equipment and supplies distribution business also jumped nearly 10 times to $1.87 million, from $185,000 a year ago. This came after the group acquired Malaysia-based dental equipment and supplies distribution company AR Dental Supplies.

Q&M's directors are recommending an interim dividend of 0.41 cents per share.

"The current financial results reflects our strength in Singapore and validates the group's strategy of continual local expansion together with expansion in China," said group chief executive Ng Chin Siau.

"With the recently announced completion of our acquisition of the Aoxin Stomatology Group in Shenyang, China on July 7 and Foo & Associates, a high-end dental practice in Singapore, on July 16, we remain optimistic about the group's performance moving forward."

The group's earnings per share for the second quarter were 0.2 cent, up from 0.15 cent a year ago. But its net asset value per share dipped to 7.4 cents as at June 30, from 7.6 cents as at Dec 31 last year.