Singapore Medical Group (SMG) has reported 36.1% lower earnings of $8.7 million for the FY2020 ended December, from earnings of $13.7 million in the year before.

FY2020 group revenue fell 7.7% y-o-y to $87.3 million due to lower revenue from its Diagnostic & Aesthetics Business and Health Business segments.

The lower revenue from both segments were attributable to lower patient volumes from the deferment of non-essential medical services and the temporary closure of certain clinics during the circuit breaker period from April to June 2020.

Gross profit for the FY2020 fell 12% y-o-y to $38 million due to the decrease in revenue, leading to a 2 percentage point dip in gross profit margin (GPM) to 44%.

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Other loss in FY2020 is due to impairment loss recognised on goodwill from the acquisition of three paediatrics clinics in 2017, compared to other gain in FY2019.

Share of profit of joint ventures and associates grew by 65.9% y-o-y to $0.5 million due to profits from its associated company, CHA SMG (Australia).

As at Dec 31, 2020, cash and cash equivalents stood at $25.6 million.

The group has recommended a final dividend of 0.4 cents per share for the FY2020, the same as FY2019.

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“FY2020 was a challenging year as the impact from Covid-19 weighed on our operations. While our diversified business model remained resilient, we were fortunate to have benefitted from governmental wage and rental support,” says SMG’s executive director and CEO Beng Teck Liang.

“As a result of structural and regulatory shifts across the paediatrics landscape in Singapore, we took a prudent approach to recognise a non-cash impairment loss on goodwill on our Paediatrics Business Unit as the outlook has become increasingly challenging and uncertain. Despite the headwinds, we were encouraged by the strong demand for our Aesthetics, Lasik, Dental and Health Screening services as consumer discretionary spending continued to hold during the year,” Beng adds.

Shares in SMG closed 2 cents lower or 4.8% down at 40 cents on Feb 19.