KUALA LUMPUR: Aesthetic medical services provider DC Healthcare Holdings Bhd registered a net loss of RM2.74 million for the third quarter of Sept 30, 2023 (3Q23), dragged by a one-off initial public offering (IPO) related expenses amounting to RM3.85 million.
The company reported a revenue of RM15.52 million, with aesthetic services contributing 84.28 per cent to the total revenue.
DC Healthcare does not have a comparative analysis against the prior year's results.
When these unique, non-recurring costs are set aside, the company' said its core operations demonstrated remarkable resilience, achieving a profit from operations of RM1.11 million.
"This performance highlights the underlying strength and robustness of DC Healthcare's business model, reflecting its potential for continued growth and success in the aesthetic medical industry," it said.
For the cumulative period of nine months, DC Healthcare registered a net profit of RM3.63 million on the back of a revenue of RM50.22 million.
DC Healthcare managing director Chong Tze Sheng said the results for 3Q23 were foundational for what was set to be a period of transformation at the company.
He added that the acquisition of I Bella Sdn Bhd, along with the company's initiatives like the bonus warrant issue and Employee Share Option Scheme (ESOS), heralded an exciting phase of expansion.
"These strategic moves are aligned with our goal to enhance our service offerings and shareholder value.
"As we step into this new phase, we are well-equipped to harness the opportunities presented by the rapidly growing aesthetic medicine market in Malaysia," he said in a separate statement.
With the aesthetic medicine market projected to grow at a compounded annual growth rate of 18.8 per cent up to 2027, Sheng said DC Healthcare was strategically positioned to capitalise on this growth, promising a bright future for the company in the dynamic healthcare landscape.
DC Healthcare has undertaken key strategic initiatives to enhance its market presence.
A significant move in this direction is the acquisition of I Bella, which diversifies the company's service offerings and extending reach in the Malay market.
Thevacquisition is partially financed through the issuance of shares at RM0.580 each, a figure that represents a premium over the current share price.
The acquisition will also strengthen DC Healthcare's portfolio with RM11.4 million profit guarantee for the financial years ending March 31, 2024 and 2025.
Additionally, the company has also proposed a reallocation of RM15.0 million from IPO proceeds to fund this acquisition, a strategic step to broaden its market scope.
Alongside this, DC Healthcare is issuing 249.08 million free warrants and establishing an ESOS.