Singapore Medical Group reports 17.2% higher 4Q earnings of $2.9 mil on revenue growth
SINGAPORE (Feb 19): Singapore Medical Group (SMG) posted a 17.2% rise in 4Q18 earnings to $2.9 million from $2.5 million a year ago, driven by increased revenue contributions from the health and diagnostic & aesthetic business segments.
Revenue for the latest quarter grew 18.1% to $22.2 million from $18.8 million in 4Q17.
The health business segment’s kids clinics, which were acquired in 2H17, contributed $0.7 million more to the latest quarter’s topline growth on top of the organic growth of existing specialist clinics.
Meanwhile, revenue from the diagnostic & aesthetics business segment rose by $2.7 million on a y-o-y basis due to SMG’s new imaging centre at Novena, as well as contributions from an aesthetic clinic acquired at end-April 2018.
In line with 4Q’s revenue increase, distribution and selling expenses grew by 22.7% to $0.9 million from $0.8 million a year ago.
Administrative expenses grew by 27.2% to $5.7 million from $4.4 million after factoring higher staff headcount from acquired subsidiaries, as well as a higher depreciation expense during the financial year.
Gross profit margin for 4Q increased by 1 percentage point to 43%, which SMG attributes to a change in the sales mix of the health and diagnostic & aesthetic business segments.
The latest set of quarterly results brings SMG’s earnings for FY18 to $12.9 million, representing a 52.1% increase from its FY17 earnings of $8.5 million.
For the full year, revenue grew 25.1% y-o-y to $85.1 million from $68 million in FY17, driven by key specialist verticals such as obstetrics and gynaecology (O&G), paediatrics, diagnostics and aesthetics.
Beng Teck Liang, executive director and CEO of SMG, says the group’s strong set of FY18 results comes on the back of strong operational execution of both organic and inorganic growth initiatives.
“While we have achieved a record-setting year, we believe this is just the beginning for SMG. In the near-term, we will continue to grow key specialist verticals in segments such as women's health, paediatrics and diagnostic imaging,” says Beng.
“In this light, we are exploring opportunities to open a new breast care clinic having identified two new specialist doctors to join us. In addition, we are exploring the possibility of opening a new imaging centre in the West of Singapore. In Singapore, we continue to explore accretive value-driven acquisition opportunities that will accelerate our growth and profit trajectory,” he adds.
Shares in SMG closed 1.12% higher at 45 cents on Tuesday.
