EQS Newswire / 30/08/2024 / 09:53 UTC+8 RESULTS HIGHLIGHTS: ● The Revenue for the six months ended 30 June 2024 (“the Period”) was approximately HK$1,701.8 million, representing an increase of about 6.3% compared to the same period last year. Notably, the major European market accounted for 48.4% of the Group’s total, with sales growing by 16.2% compared to the same period last year. ● The Gross Profit Margin for the Period was approximately 53.7%, with a gross profit of about HK$914.0 million, represents an increase of approximately 5.4% compared to the same period last year. ● The Group’s Adjusted EBITDA for the Period was approximately HK$388.6 million, representing an increase of approximately 5.1% as compared to the same period last year. ● The profit from the Group’s core business for the Period was approximately HK$225.5 million, representing a growth rate of 7.2% compared to the same period last year. ● The Group’s Net Profit for the Period was approximately HK$214.4 million, representing an increase of approximately 1.9% as compared to the same period last year. ● With respect to the Group’s EBITDA and Net Profit for the Period, it should be noted that the figures reflect: (i) one-off cost in connection with potential acquisitions of approximately HK$2.8 million; and (ii) one-off cost in connection with Shenzhen and Vietnam production facility relocations of approximately HK$10.2 million. ● Basic earnings per share for the six months ended 30 June 2024 amounted to HK$22.59 cents. ● The Board declared an interim dividend of HK8.0 cents per ordinary share for the six months ended 30 June 2024. ● During the period under review, The Group’s digital solution cases (overseas and domestic) that are produced from its Mainland China production facilities increased to approximately 602,485 cases reflecting an increase of 61.1% as compared with the same period in 2023 as a result of our clients’ continued adoption of intra-oral scanners.
(29 August 2024, Hong Kong) – Modern Dental Group Limited (hereinafter referred to as “Modern Dental Group” or “the Group”, stock code: 03600.HK”), a leading global dental prosthetics provider, is pleased to announce the unaudited interim results for the six months ended 30 June 2024 (“the Period”).
During the six months ended 30 June 2024, although the macro-economic environment continues to be challenging, the Group’s multi-dimensional strategies and comprehensive products portfolio, encompassing higher-priced and cost-effective dental treatments, enabled the Group to capitalize on market opportunities by capturing new customers and increase its sales volume, displaying the Group’s ability to outperform its competitors throughout the economic cycle. The consolidation trend of the dental prosthetics industry is clearly continuing, and with the addition of our Vietnam production facility and Dongguan Phase 2 production facility – the Group has further improved its market positioning.
The Group’s continued sales increase represents a solid execution across each of the Group’s markets operationally and financially, illustrating the Group’s ability to deliver strong financial results in a relatively stable operating environment characterized by consistent order volume growth, competitiveness in the industry, and close relationship with its clients and customers. The Group’s underlying fundamentals continue to be solid and we are well-positioned to capture further opportunities going forward.
European Business During the period under review, the European market recorded a revenue of approximately HK$822.9 million, representing an increase of approximately HK$112.9 million as compared with the six months ended 30 June 2023. This geographic market accounted for approximately 48.4% of the Group’s total revenue. The increase of revenue from the European market was attributable to the increase in sales order volume driven by the launch of new products, such as digital dentures, and our state-of-the-art digital workflows.
The Group has been the frontrunner providing comprehensive digital solutions offerings, ranging from numerous minimal invasive and aesthetic prosthetic solutions to intra-oral scanners and clear aligners, and is well positioned to capture the opportunities arising from the accelerated digitalization trend of the dental industry. The Group continues to aggressively gain market share from international and domestic competitors through our established dental ecosystem solutions with a focus on education and digitalization, which is available within close proximity to our clients; effectively meeting our clients’ high expectations through our various onshore and offshore resources.
North American Business During the period under review, the North American market recorded a revenue of approximately HK$385.3 million. This geographic market accounted for approximately 22.6% of the Group’s total revenue.
Our clients’ interest surrounding digital dentistry continued to increase during the period. A significant portion of our business in the North America region comprises higher-end products manufactured domestically. With our centralized digital workflows and network oversight over our wide coverage of production units within the region, we are well positioned to support the customers’ needs through their digitalization journey, focusing on leveraging efficiencies and providing an enhanced customer experience throughout the network. Looking forward, the Group targets to utilize the Vietnam production facility to establish a new business unit specialized in serving mid/large scale dental clinic chains customers in the North American market.
Greater China Business During the period under review, the Greater China market recorded a revenue of approximately HK$335.8 million. This geographic market accounted for approximately 19.7% of the Group’s total revenue. As a result of the increase in sales volume in the Mainland China market following the full implementation of the volume-based procurement policy in the Mainland China market gradually since the second half of 2023, our Mainland China business reported a sales growth of 9.5% in the Period compared to the same period last year but is offset by the depreciation of RMB against HK$ by 2.7%. However, this also led to aggressive promotions for dental implant treatments by Mainland China dental clinics in Hong Kong (which experienced a notable decrease in patient visits in Hong Kong).
The Group is optimistic in its mid/long-term outlook for this market in particular where the latest procurement-related government measures are expected to (i) standardize the pricing of dental prosthetics and develop price transparency, which would level the playing field; (ii) allow the Group’s leading brand name and reputation to be a key consideration for its client and customer; and (iii) have the Group benefit from its large production team and its ability to allocate resources efficiently according to the customer or client.
Australian Business During the period under review, the Australian market recorded a revenue of approximately HK$127.9 million representing an increase of approximately HK$3.6 million as compared with the six months ended 30 June 2023. This geographic market accounted for approximately 7.5% of the Group’s total revenue. The increase of revenue from the Australian market was predominately due to the increase in sales volume as a result of the increase in market share driven by the digitalization trend in dental industry which is partially offset by the depreciation of AUD against HK$ by 2.8% compared with the six months ended 30 June 2023.
Through our various brands, which offer onshore-and offshore- made products, at multiple price points ranging from economy and standard to premium/boutique, the Group is able to effectively penetrate the entire Australian market.
Future Prospects It is expected that the Group continues to consolidate the dental prosthetic market, and the Board is of the view that the consolidation trend is irreversible and clearly continuing. Therefore, notwithstanding any short- or medium-term challenges the global economy may face, the Board is confident that the Group is expected to outperform its competitors. In a year where some of the Group’s competitors had faced materially adverse issues, the Group continued to thrive and it is the Group’s ability to thrive during such uncertain economic conditions that give the Board comfort in its optimistic view of the Group.
Going forward, the Group aims to reinforce its worldwide leading position through opportunistic transactions including strategic co-operations, acquisitions, joint ventures and/or partnerships, to further expand and complement our product-offering (in particular, our clear aligner products), distribution and sales networks which will in turn, drive our business expansion. The Group continues to grow into more than just a one-stop shop dental prosthetic provider, but a full dental ecosystem to support our customers. The Group’s investment in Dongguan phase 2 and Vietnam production facilities are expected to provide the Group with greater production solutions and optionality which will in turn, increase the Group’s level of research and development in further enhancing our production and products.
Looking forward to 2024, with the Board’s extensive experience and determination to meet any short-term challenges, the Group is in an ideal position to take full advantage of, and will remain opportunistic in, any business opportunities whilst remaining cautious and prudent in safeguarding shareholders’ interests.
About Modern Dental Group
Modern Dental Group Limited (Stock code: 03600.HK) is a leading global dental prosthetics provider, distributor and consultant with a focus on providing custom-made prostheses to customers in the growing prosthetics industry. Our product portfolio is broadly categorized into three product lines: fixed prosthetic devices, such as crowns and bridges; removable prosthetic devices, such as removable dentures; and other devices, such as orthodontic devices, sports guards, clear aligners, and anti-snoring devices.
Modern Dental Group has a global portfolio of respected brands, including Labocast, Permadental and Elysee Dental in Western Europe, YZJ Dental in China, Modern Dental Lab in Hong Kong, Modern Dental USA in the United States, and Southern Cross Dental in Australia. We have grown these brands by providing premium and consistent quality products and superior customer service. We have more than 80 service centers in over 23 countries and serve over 30,000 customers.
30/08/2024 Dissemination of a Financial Press Release, transmitted by EQS News. Media archive at www.todayir.com |