DC Healthcare Reports First Quarter 2024 Financial Results

Group to Focus on Sustainable Growth Through Strategic Expansion and Technological Advancement

KUALA LUMPUR, 27 MAY 2024 – DC Healthcare Holdings Berhad ("DC Healthcare" or the "Group"), an aesthetic medical services provider specialising in the provision of non-invasive and minimally invasive procedures, today announced its financial results for the first quarter ended 31 March 2024 (“1Q FY2024”). The Group recorded a revenue of RM9.5 million, a decrease from RM16.8 million in 1Q FY2023, primarily attributed to a lower redemption rate in aesthetic services.

Despite the lower redemption rates, the Group’s contract liabilities have increased to RM9.6 million, up from RM3.7 million as of 31 December 2023. Contract liabilities consist of prepaid packages that have not yet been redeemed and recognised as the Group's revenue. These contract liabilities represent obligations to deliver services in the future.

Furthermore, DC Healthcare’s cash sales collection remained healthy, showcasing the underlying strength of the Group's operational and financial strategies. This quarter saw a significant shift in market dynamics which impacted the gross profit, closing at RM1.2 million compared to RM9.8 million in 1Q FY2023.

The Group faced a loss before tax of RM7.9 million, compared to a profit of RM3.2 million in the 1Q FY2023. This loss reflects higher administrative expenses, which included an increase in marketing costs amounting to RM1.8 million, aimed at bolstering the Group's market presence and customer engagement strategies.

Dr. Chong Tze Sheng, Managing Director of DC Healthcare said, "Despite a lower redemption rate in our aesthetic services, our ability to maintain strong cash collections underscores the effectiveness of our customer relations and the intrinsic value of our services. We are taking strategic steps to adjust to market dynamics and enhance our service offerings. We also believe that effective management of the contract liabilities will ensure long-term financial health and customer satisfaction."

Looking ahead, DC Healthcare is committed to enhancing its standing in the medical aesthetic sector through targeted business strategies. These efforts include expanding clinics in both the Southern and Northern regions of Malaysia, attracting highly skilled and experienced personnel, and consistently updating medical equipment with the latest technology to support growth and enhance service quality. The Group remains optimistic about its prospects, supported by competitive strengths that are poised to foster sustainable growth in a dynamic market.