DC Healthcare Reports RM13.88 Million in Revenue for 2Q FY2024

Group Focuses on Sustainable Operational Strategies Amidst Market Headwinds

KUALA LUMPUR, 27 AUGUST 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 second quarter ended 30 June 2024 (“2Q FY2024”). The Group recorded a revenue of RM13.88 million, a decline compared to RM17.89 million in corresponding quarter in previous financial year (“2Q FY2023”), primarily due to a lower redemption rate in aesthetic services.

However, the Group saw an increase in its contract liabilities, which rose to RM13.66 million from RM3.71 million as of 30 June 2024. These contract liabilities, which represent prepaid packages yet to be redeemed, indicate a steady future revenue stream and showcase customer confidence in DC Healthcare’s offerings over the longer term.

The Group recorded a gross profit of RM5.19 million for 2Q FY2024. The slower gross profit is primarily due to increased operational and marketing costs, which were necessary to support the Group's strategic growth initiatives, including the opening of new outlets.

The Group reported a Loss Before Tax (“LBT”) of RM6.71 million, compared to a profit before tax of RM5.27 million in 2Q FY2023. This loss is attributed to several factors, including a rise in administrative expenses due to increased marketing efforts, higher operational costs, and a non-recurring professional fee related to recent corporate exercises.

On a quarter-over-quarter basis, the Group saw an improvement in its financial performance. Revenue increased by 47% from RM9.45 million in 1Q FY2024 to RM13.88 million in 2Q FY2024. This growth was driven by a higher number of treatments provided in aesthetic services in the current quarter. The Group’s loss before tax narrowed to RM6.71 million in 2Q FY2024, down from a loss of RM7.91 million in the previous quarter, reflecting improved operational efficiency and effective cost management.

Dr. Chong Tze Sheng, Managing Director of DC Healthcare commented, "Our revenue growth in this quarter, despite lower redemption rates, reflects the robustness of our business model and the trust our clients have in us. We continue to focus on expanding our footprint and enhancing our service quality to meet the rising demand for aesthetic services. The increase in contract liabilities demonstrates our customers’ strong commitment to our services, which we believe will translate into sustained revenue in the coming quarters."

Looking ahead, DC Healthcare remains focused on its strategic objectives, which include expanding its clinic network across Southern and Northern Malaysia, attracting top talent, and upgrading its medical technology to remain competitive. These initiatives are designed to strengthen the Group’s position in the medical aesthetic sector and ensure long-term growth and profitability.