Atiqah Mokhtar Published on Fri, Aug 13, 2021
Q&M Dental Group has reported earnings of $8.4 million for the 2QFY2021 ended June, translating to a 23% increase y-o-y from $6.8 million previously.
This brings 1HFY2021 earnings to $21.5 million, up 142% y-o-y from $8.9 million previously.
2QFY2021 revenue doubled to $50.8 million from $24.9 million in 2QFY2020, mainly due to higher revenue in dental outlets as well as significant revenue contribution from Covid-19 testing from the group’s Covid-19 medical laboratory business.
1HFY2021 revenue grew 73% y-o-y to $54.7 million.
Excluding the other gains, share of associate loss and one time item, the group’s adjusted earnings for the 2QFY2021 increased more than 10 times to $8.2 million in 2QFY2021.
For 1HFY2021, the group’s adjusted earnings came in at $15 million, up 395% y-o-y.
As at June 30, the group had cash and cash equivalents of $43.9 million, bank borrowing and finance leases of $83.7 million. Net debt was $39.9 million.
Q&M is proposing a second interim dividend of 1 cent per share, which follows its 1QFY2021 interim dividend of 1 cent. The second interim dividend will be paid out on Sep 3.
The group is also proposing a bonus issue of up to 157.5 million new ordinary shares on the basis of one bonus share for every five existing ordinary shares. The bonus issue shares will not be entitled to the second interim dividend.
Commenting on the results, Dr Ng Chin Siau, group CEO of Q&M says, “We will continue to expand organically with a target of opening 30 new clinics yearly starting from 2021 in Singapore and Malaysia. The group is optimistic that our core business would continue to see growth as a result of our expansion efforts, linked to the gradual release of social restrictions, and the subsequent controlled reopening of Singapore. As Singapore shifts to managing Covid-19 as endemic, we see new opportunities to support the government beyond PCR testing, including swabbing and vaccination services.”
As at 3.06pm, shares in Q&M are up 2.5 cents or 3.09% higher at 83.5 cents.