SBC Medical Q1 Profit Rises 15 Pct Despite Revenue Dip

KUALA LUMPUR, May 16 (Bernama) -- SBC Medical Group Holdings Incorporated, a global provider of management services to cosmetic treatment centres, recorded a net profit of US$22 million for the first quarter (Q1) ended March 31, marking a 15 per cent increase year-on-year (y-o-y). (US$1=RM4.27)

In a statement, the company said the higher net profit was mainly attributed to a special gain from the maturity of a life insurance policy.

However, revenue for the quarter fell 14 per cent y-o-y to US$47 million, primarily due to the discontinuation of its staffing business and the divestment of subsidiaries, including Sky Net Academy and SBC Kijimadaira Resort.

SBC Medical Chairman and Chief Executive Officer, Yoshiyuki Aikawa said the company was actively pursuing strategic expansion by enhancing its platform, improving its profitability structure, and adjusting pricing strategies in line with evolving market conditions.

“The expansion of Medical Corporations gained traction in our franchising, procurement and rental segments as global demand for aesthetic medical services continued to rise,” he said.

The company’s operating income edged down by one per cent to US$24 million, while earnings per share rose five per cent to US$0.21.

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Meanwhile, its earnings before interest, taxes, depreciation and amortisation (EBITDA) declined three per cent to US$25 million, with the EBITDA margin improving to 52 per cent from 46 per cent previously. Return on equity was 41 per cent, down 10 percentage points from the previous year.

SBC Medical expanded its network to 251 partner clinics, up by 36 from the same period last year. Customer count for the last 12 months saw a 14 per cent rise to 6.1 million, with a repeat visit rate of 71 per cent for franchisee clinics.

Looking ahead, the company said it remains focused on scaling its franchise model and accelerating expansion across domestic and international markets.

-- BERNAMA