- Q&M Dental (SGX:QC7)'s FY22 revenue met expectations but earnings were below. FY22 revenue and adjusted PATMI were 99%/90% of our forecast.
- The significant drop in COVID-19 related earnings and higher expenses in the development of AI-guided clinical support systems were the drag. Our adjusted PATMI excludes S$5.1mil of impairment of inventories (S$4.9mil) and plant and equipment (S$0.2mil) incurred in 4Q22.
- - Read this at SGinvestors.io -
- - Read this at SGinvestors.io -
The Positive
Number of clinics expanded.
- In FY22, Q&M Dental expanded the number of clinics by 16 (or 12%). Most of the new clinics were in Singapore, with 10 new clinics. Profitability from core dental operations tripled to S$3.4mil. This was due to a change in the accrual of staff bonuses from a lumpy 4Q to proportionate provisioning per quarter.
The Negative
Revenue per clinic declined.
- Read more at SGinvestors.io.