Modern Dental Group (3600) H2 2024 earnings summary

Executive summary

• Revenue grew 6.1% year-over-year to HK$3,364.0 million, driven by increased sales volume and market share gains, especially in Europe and digital solutions.

• Net profit rose 1.2% to HK$406.9 million, with adjusted EBITDA up 6.9% to HK$741.5 million, reflecting strong operational execution and digitalization benefits.

• The Group completed the acquisition of Hexa Ceram, Thailand's largest dental lab, in January 2025, expanding its Southeast Asia presence.

• Final dividend of HK9.2 cents per share recommended, up from HK9.0 cents last year.

Financial highlights

• Gross profit increased 5.8% to HK$1,798.9 million; gross margin slightly decreased to 53.5% from 53.6%.

• EBITDA reached HK$708.8 million (+2.1%), with adjusted EBITDA at HK$741.5 million (+6.9%).

• Profit from core operations rose 8.3% to HK$435.0 million; basic EPS increased 1.9% to HK43.2 cents.

• Net cash from operating activities was HK$521.2 million, down from HK$575.8 million, mainly due to higher tax payments.

• Gearing ratio improved to 14% from 16%, with cash and cash equivalents at HK$816.8 million.

Outlook and guidance

• The Group expects steady global demand for dental prosthetics, supported by demographic trends and digitalization.

• Strategic focus on expanding product offerings, especially clear aligners, and strengthening global distribution.

• Plans to evolve into a full dental ecosystem provider, leveraging acquisitions and digital transformation.