SBC Medical Posts Strong Third Quarter 2024 Results

KUALA LUMPUR, Nov 14 (Bernama) -- SBC Medical Group Holdings Incorporated (SBC Medical), reported a net income of US$40.1 million for the nine months ended Sept 30, compared to US$24.3 million in the same period of last year. (US$1=RM4.44)

In a statement, the global owner, operator and provider of management services and products to cosmetic treatment centres said the increase was attributed mainly to total revenue growth but partially offset by an increase of total operating expenses.

Meanwhile, for the first nine months, total revenues reached US$160 million, an impressive 23 per cent increase year-over-year from US$131 million, mainly driven by the introduction of patent and trademark fees for the company’s franchisee clinics, as well as the growth in the number of franchisee clinics.

For the nine months ended Sept 30, earnings before interest, taxes, depreciation, and amortisation (EBITDA) was US$68.4 million, representing an increase of 22 per cent from US$56.3 million in the same period of 2023, with an EBITDA margin of 42 per cent.

It is mainly due to revenue growth but partially offset by listing-related consulting and professional fees, and stock-based compensations.

Earnings per share (basic), which is defined as net income attributable to the company divided by weighted average number of outstanding shares, was US$0.42 for the nine months, representing a year-over-year increase of 56 per cent.

Additionally, the number of partner clinics climbed to 224 as of Sept 30, up by 24 from the previous year, whereas the number of customers in the last twelve months was 4.3 million, a year-over-year increase of 13.5 per cent.

SBC Medical's first earnings release as a publicly listed company marks a significant milestone. The company has a robust balance sheet supported by US$137 million in cash and is committed to sustainable growth supported by a clear capital policy.

The company has focused on restructuring royalty fees and expanding its clinic network, which has positively impacted its financial results. With a robust cash reserve and sound operational cash flows, SBC Medical is confident in its ability to meet near-term liquidity requirements and to fund future growth initiatives.

Management believes that the current cash position, alongside planned operational cash flow, will be sufficient to support the company’s business operations and strategic investments for the next 12 months.

-- BERNAMA