+ Number of clinics expanded. In FY22, Q&M expanded the number of clinics by 16 (or 12%). Most of the new clinics were in Singapore, with 10 new clinics. Profitability from core dental operations tripled to S$3.4mn. This was due to a change in the accrual of staff bonuses from a lumpy 4Q to proportionate provisioning per quarter.
– Revenue per clinic declined. 4Q22 revenue per clinic declined by 12% YoY to S$382k. New clinics have not reached maturity, as nurse shortages and the re-opening of borders have dampened visits. Nevertheless, total revenue from core dental was flat YoY at S$46.2mn.
The priority in FY23 is to raise the utilisation of the existing clinics. After the aggressive expansion over the past two years (34 clinics), the company will look to raise visits and revenue intensity per patient. Recruitment into the existing network of clinics will boost the availability of dentists. Improving the skill sets of the current dentists is another initiative to increase revenue intensity. Q & M is also pursuing an AI-guided dental software that creates an ethical standard cum procedures that supports dentists.