Yahoo Finance Q&M posts lower earnings on plunge in Covid-testing revenue, withholds interim dividend
It is eyeing other Asean markets for growth.
Q&M Dental Group (Singapore) has reported lower earnings in tandem with a drop in testing services no longer as in high demand as before.
For 2QFY2022 ended June, earning was down 60% y-o-y to $3.4 million, on the back of 13% drop in revenue to $44.1 million.
For 1HFY2022 ended June, earnings was down 45% y-o-y to $9.9 million. Revenue, meanwhile, was down 4% y-o-y to $90.9 million.
Revenue from its dental and medical clinics was up 5% y-o-y to $39.9 million while its smaller lab and supplies segment was down 67% y-o-y to $4.2 million.
The company plans to withhold an interim dividend for 2Q, as it plans to husband its internal resources for planned expansion ahead in a higher interest rate environment.
It now runs 104 clinics in Singapore and is in the midst of “a strategy of intensive organic growth” in Singapore. It has already shortlisted “appropriate locations” to open two new clinics in the subsequent quarters.
It has been expanding in Malaysia too, with three new dental clinics in Cheras Selatan, Bahau and Segamat.
It is eyeing other Asean markets for growth as well.
Q&M shares closed at 48 cents, down 2.04%.
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