KUALA LUMPUR, April 2 (Bernama) -- SBC Medical Group Holdings Incorporated (SBC Medical), a global owner, operator and provider of management services and products to cosmetic treatment centres, reported a mixed performance with a decline in quarterly figures but a notable increase in annual revenues.
In a statement, SBC Medical said the company’s total revenues dropped 29 per cent to US$44 million in the fourth quarter (Q4) of 2024, compared to the previous year. (US$1=RM4.43)
Net income also decreased by 54 per cent to US$7 million, with earnings per share dropping 58 per cent to US$0.06. Gross profit fell by 22 per cent to US$34 million, while income from operations plummeted by 80 per cent, reaching just US$5 million.
These figures reflect the struggles faced by SBC Medical, posing potential challenges for the company moving forward.
Despite these challenges, the company's earnings before interest, taxes, depreciation, and amortisation (EBITDA) margin improved to 47 per cent, signalling some operational efficiency.
However, despite the fourth-quarter setbacks, SBC Medical achieved strong full-year results with a six per cent increase in total revenues and an 18 per cent rise in net income, driven by the expansion of franchise clinics and a strategic acquisition in Singapore.
The company expanded its network to 251 partner clinics, serving 6.03 million customers—a 15 per cent growth—and boasting a strong 71 per cent repeat customer rate.
On the financial front, SBC Medical’s balance sheet showed positive results, with total assets rising to US$266 million and cash and cash equivalents growing to US$125 million, offering liquidity for future operations.
Total liabilities dropped significantly to US$71 million, indicating improved financial health. However, the return on equity decreased to 28 per cent, suggesting room for improved efficiency in profit generation.
Despite a challenging regulatory environment and heightened competition in Japan’s aesthetic medical market, SBC Medical maintained its market leadership. Strategic pricing for its franchise clinics helped increase customer numbers, and the acquisition of Aesthetic Healthcare Holdings in Singapore marked an important step in its Asian expansion strategy.
Looking ahead, SBC Medical aims to maintain its market leadership by revising its franchise fee structure and implementing strategic pricing initiatives to support long-term growth and expansion both domestically and internationally.
-- BERNAMA
