KUALA LUMPUR: DC Healthcare Holdings Bhd registered a net loss of RM7.91 million for the first quarter ended March 31, 2024 (1Q24) compared to a net profit of RM2.36 million a year ago.
The group said the loss reflects higher administrative expenses, which included an increase in marketing costs amounting to RM1.8 million, aimed at bolstering its market presence and customer engagement strategies.
The company recorded a revenue of RM9.5 million, down from RM16.8 million in 1Q23, primarily attributed to a lower redemption rate in aesthetic services.
Despite the lower redemption rates, DC Healthcare said its contract liabilities had increased to RM9.6 million, up from RM3.7 million as of Dec 31, 2023.
Furthermore, DC Healthcare's cash sales collection remained healthy, showcasing the underlying strength of the company's operational and financial strategies.
This quarter saw a significant shift in market dynamics which impacted the gross profit, closing at RM1.2 million compared to RM9.8 million in 1Q23.
DC Healthcare managing director Dr Chong Tze Sheng said despite a lower redemption rate in its aesthetic services, its ability to maintain strong cash collections underscores the effectiveness of customer relations and the intrinsic value of its 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," he said in a statement.
Looking ahead, DC Healthcare said it 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.
It remains optimistic about its prospects, supported by competitive strengths that are poised to foster sustainable growth in a dynamic market.