KUALA LUMPUR (May 27): Aesthetic medical services provider DC Healthcare Holdings Bhd (KL:DCHCARE) reported on Monday, its third consecutive quarter of net loss, amid a lower redemption rate in its core business.
Net loss for the first quarter ended March 31, 2024 (1QFY2024) was RM7.91 million, compared to a net profit of RM2.36 million in the same period last year, DC Healthcare’s bourse filing showed. Revenue also shrank 43.76% year-on-year to RM9.45 million, from RM16.81 million, due to a lower redemption rate in aesthetic services.
DC Healthcare, which was just listed on Bursa Malaysia in July 17 last year, said it remains committed to its core business and aims to capitalise on the growth in the medical aesthetic industry, by establishing new medical aesthetic clinics in the Southern and Northern regions.
“In order to support the expansion, we intend to strengthen our medical doctors, clinic consultants and other support staff, by attracting and recruiting highly skilled and experienced personnel,” it added.
DC Healthcare attributed the weak earnings during the quarter under review to a surge in its administrative expenses, of approximately RM6.07 million, due to increased marketing costs, which rose by RM1.67 million.
These costs were in line with the expansion of the company’s aesthetic outlets, from operating 10 outlets in the 1QFY2023 to 16 outlets in 1QFY2024. It has also introduced new products under the brand “Ten Doctors” and opened three new outlets specialising in slimming services.
Quarter-on-quarter, DC Healthcare’s net loss widened from RM1.07 million in 4QFY2023. Revenue was also down 46.2% from RM17.57 million, primarily due to the lower redemption rate in aesthetic services.
As of the noon market break on Monday, DC Healthcare’s shares settled at 24.5 sen, representing a 2% decline and valuing the company at RM244.09 million. The healthcare company saw its share price depreciate more than half from its historical high of 54 sen on Aug 3, 2023, compared to the current price of 24.5 sen. On a year-to-date basis, DC Healthcare’s share price has dropped over 39%.
Note: This article has been amended for accuracy.