Q&M Dental reports 3Q18 rose 1 percent amid higher Singapore revenue

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Q&M Dental said on Wednesday that its third-quarter net profit rose 1 percent on-year to S$3.62 million amid higher revenue from the Singapore outlets.

Revenue for the quarter was nearly flat at S$29.52 million in the quarter, compared with S$29.46 million in the year-ago period, it said in a filing to SGX after the market close on Wednesday.

Dental and medical outlet revenue was up slightly at S$27.7 million for the quarter from S$27.6 million in the year-ago quarter, mainly on higher revenue from new and existing dental outlets in Singapore, Q&M said.

But revenue from the dental equipment and supplies distribution business fell slightly to S$1.8 million in the quarter from S$1.9 million in the year-ago quarter, it said.

“The decrease was due to lower revenue from the dental equipment and supplies distribution company in Singapore and Malaysia arising from less purchases by the private sectors,” Q&M said.

The cost of consumables and supplies used in the dental and medical clinics fell 16 percent on-year in the quarter ended 30 September to S$1.98 million, it said.

“The decrease was mainly the result of tighter control of usage of consumables and supplies used in dental and medical clinics in Singapore,” Q&M said.

The costs of sales for dental equipment and supplies fell 12 percent on-year to S$1.28 million, it said.

“The decrease was mainly due to a decrease in cost of sales from the dental equipment and supplies distribution company in Malaysia,” Q&M said.

Q&M had 72 dental outlets and four medical outlets in Singapore, 16 dental outlets in Malaysia and one dental outlet in China, as of 30 September, it said.

Q&M indicated it planned to continue to expand its network.

“We will employ an intensive growth strategy which focuses on organic growth in Singapore and Malaysia as well as strategic business opportunities in PRC,” Ng Chin Siau, CEO of Q&M, said in the statement.

“Several new rental agreements are already in place for Singapore and Malaysia and the team is actively working on opportunities to acquire established dental institutions and dental supplies manufacturers in PRC,” Ng said.