DC Healthcare Holdings Berhad, an aesthetic medical services provider, reported a revenue decrease of RM9.5 million in Q1 2024, a decrease from RM16.8 million in 1Q FY2023, mainly due to lower redemption rates in aesthetic services.
However, the Group’s contract liabilities increased to RM9.6 million, representing obligations to deliver services in the future. Despite this, DC Healthcare’s cash sales collection remained healthy, showcasing the Group’s operational and financial strategies. The gross profit closed at RM1.2 million, compared to RM9.8 million in Q1 2023. The Group faced a loss before tax of RM7.9 million, compared to a profit of RM3.2 million in Q1 2024, due to higher administrative expenses and an increase in marketing costs. This loss reflects an increase in marketing costs aimed at enhancing 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.