SINGAPORE (Aug 7): Singapore Medical Group saw its earnings rise 3.5% to $3.5 million for the 2Q19 ended June, from $3.4 million a year ago.

On a fully diluted basis, earnings per share dipped to 0.69 cent in 3Q19, from 0.73 cent in 3Q18.

2Q19 revenue grew 6.8% to $23.1 million, from $21.6 million a year ago.

The increase was mainly due to increase in revenues of it Health Business and Diagnostic & Aesthetics Business segments, which grew by $1.0 million and $0.4 million respectively, on the back of  organic growth of the existing clinics.

Gross profit rose 10.4% to $10.7 million in 2Q19, from $9.7 million a year ago, as gross profit margin increased by one percentage point to 46% in 2Q19.

The higher gross profit margin was mainly due to changes in sales mix of the Health Business segment and Diagnostic & Aesthetics Business segment.

Administrative expenses grew 9.6% to $5.3 million, mainly due to increase in staff headcount arising from the acquisition of Pheniks in April 2018 and the increased number of clinics in the group.

As at end June, cash and cash equivalents stood at $25.7 million.

Looking ahead, SMG says it will continue its recruitment initiatives to hire more specialists in key complementary verticals. It targets to onboard an additional 10 to 12 specialists this year.

Meanwhile, it says it remains cautious on the growth of its aesthetics segment due to the global economic uncertainties.

In the first half of 2019, the group had expanded its aesthetics segment with the opening of a second SW1 Clinic in Singapore and a new 4,000 square feet aesthetics centre in Ho Chi Minh City.

It adds that it will focus on its various growth strategies for its overseas market and remains optimistic on the continued growth of its joint ventures. It will also look to strengthen its strategic partnership with CHA Healthcare Co.

Shares in SMG closed flat at 37 cents on Wednesday before the results announcement.