Q&M Dental reports 4Q21 net profit fell 47 percent despite revenue rise

Q&M Dental clinic at Tanjong KatongQ&M Dental clinic at Tanjong Katong

Q & M Dental Group (Singapore) reported Wednesday its fourth quarter net profit fell 47 percent on-year to S$3.17 million, partly on higher expenses for consumables and supplies. 

Total revenue for the three months ended 31 December increased 22 percent on-year to S$43.60 million, the dental clinic operator said in a filing to SGX.

The contribution from dental and medical clinics rose on higher revenue from new and existing dental clinics in Singapore, while the medical laboratory and dental equipment and supplies contribution increased mainly on revenue from the Covid-19 medical laboratory business, which obtained a license from Singapore’s Ministry of Health in September 2020, the filing said.

The cost of equipment and supplies surged 202 percent on-year in the fourth quarter to S$4.66 million on an increase in revenue and on inflationary pressure leading to higher prices for consumables and supplies, the filing said. 

Employee benefits expense rose 22 percent on-year in the quarter to S$30.21 million, the filing said. Income tax expense also nearly doubled to S$2.94 million, Q&M said.

For the full year, Q&M reported net profit rose 55 percent on-year to S$30.47 million on total revenue of S$205.60 million, up 49 percent on-year. 

Upbeat on results

Q&M was upbeat on the results. 

“This is the best set of financials in Q&M’s 25-year history since its founding in 1996,” the company said. “The Covid-19 pandemic had no impact on the Group’s core dental and medical clinics business segment and continued its strong growth trend.” 

Q&M declared an interim dividend of 1 Singapore cent for the fourth quarter, bringing the total dividend for the year to 4 Singapore cents. 

For 2020, Q&M had paid a final dividend of 0.5 Singapore cent a share, for a total of 3.4 Singapore cents a share for the year, the filing said.

Read more about Q&M’s results.