SBC Medical Posts US$43 Mln Q2 Revenue, Net Income Falls 87 Pct
KUALA LUMPUR, Aug 15 (Bernama) -- SBC Medical Group Holdings Inc (SBC Medical) reported second-quarter (Q2) revenue of US$43 million, an 18 per cent year-over-year (YoY) decline, as the company continues to realign its business around higher-margin services and scalable growth. (US$1=RM4.21)
The revenue contraction was primarily attributed to the discontinuation of SBC Medical's staffing services, as well as targeted divestitures and a revised franchise fee structure introduced in April this year, according to a statement.
Meanwhile, its net income fell 87 per cent to US$2.5 million, with earnings per share dropping to US$0.02, compared to US$0.20 in the same period last year.
Operating income for the quarter was US$15 million, down 47 per cent YoY. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) also declined significantly by 46 per cent to US$15 million, with the EBITDA margin narrowing from 53 per cent to 35 per cent.
Its Chairman and Chief Executive Officer, Yoshiyuki Aikawa said Q2 reflects the deliberate execution of its strategic roadmap, adding that the company has also signalled interest in further optimising its business model amid challenges in Japan's consumer discretionary sector, including trade restrictions and cautious spending.
He noted that while revenue temporarily declined, the company is scaling its franchise network, exiting non-core operations, and shifting toward higher-margin services that will drive long-term value.
Despite these financial setbacks, the company expanded its franchise network to 259 clinics, and the number of customers served in the past 12 months rose 14 per cent to 6.31 million. The company also maintained a high 72 per cent repeat visit rate.
The company recently added JUN CLINIC to its network and acquired MB Career Lounge, aiming to enhance support services for its franchise partners.
Headquartered in Irvine, California, and Tokyo, Japan, SBC Medical owns and provides management services and products to cosmetic treatment centres, primarily focused on providing comprehensive management services to franchise clinics.
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