MAINBOARD-LISTED Q&M Dental Group’s net profit for the second half ended Dec 31, 2024, fell 22 per cent to S$4.8 million, from S$6.2 million in the corresponding year-ago period.
This was mainly due to lower revenue from its Singapore dental clinics, as well as the cessation of its medical laboratory in September 2024 due to the expiry of its clinical laboratory service licence.
Earnings per share for the half-year period came in at S$0.0051, compared to S$0.0065 previously.
Revenue for the half-year period fell 4 per cent to S$91.5 million, from S$95.6 million a year earlier. This was on the back of revenue declines for both its core and other business segments.
Revenue for its core dental business declined 2 per cent to S$89.1 million, from S$91.3 million previously, as revenue gains from its Malaysia dental clinics could not fully offset declines from its Singapore business.
Meanwhile, revenue for its other businesses tumbled 46 per cent to S$2.3 million, due to the suspension of its medical laboratory.
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Its board proposed a second interim dividend of S$0.007 per share to be paid out on Mar 26, after books closure on Mar 12.
For the full-year, Q&M’s net profit was up 27 per cent at S$14.6 million, from S$11.5 million in the previous corresponding period.
In the bourse filing, the dental group said there are “no known significant changes in trends and competitive conditions” of the dental industry, and no other major known factors or events that may adversely affect it for the next financial year.
In January, EM2AI, an associated company of the group, received licenses in Thailand, Vietnam, Indonesia and the Philippines for its dential artificial intelligence solutions.
The group understands that EM2AI is “actively seeking distributors and potential customers in these jusrisdictions as part of its efforts to expand the business”.
EM2AI also entered into a memorandum of understanding on Jan 20 with an unnamed “established provider of dental solutions” in the region, serving about 1,000 dental clinics.
“This collaboration is part of the board’s plan for EM2AI to expand its business network in the region and represents a strategic step towards expanding (its) footprint in key regional markets.”
In Singapore, Q&M operates 106 dental clinics, 5 medical outlets, a dental college and a dental equipment and supplies distribution company.
In Malaysia, the company has 38 dental clinics and a dental equipment and supplies distribution business.
For FY2024, Singapore and Malaysia made up about 93 and 7 per cent of total revenue, respectively.
Shares of Q&M fell S$0.005 or 1.7 per cent to S$0.285 on Friday, before the announcement.
