Modern Dental Group Announces 2024 Third Quarter Operational Update

(28 November 2024, Hong Kong) - Modern Dental Group Limited ("Modern Dental" or "the Group", stock code: 03600.HK), a leading global dental prosthetic devices provider, announced its operational data for the nine months ended 30 September 2024.

 

During the nine months ended 30 September 2024, although the macro-economic environment continues to be challenging, the Group’s multi-dimensional strategies and comprehensive products portfolio, encompassing higher-priced and cost-effective dental treatments, enabled the Group to capitalize on market opportunities by capturing new customers and increase its sales volume, displaying the Group’s ability to outperform its competitors throughout the economic cycle.

 

Global Revenue

For the nine months ended 30 September 2024, the total revenue of the Group increased by approximately 6.7% (approx. HK$2,521.6 million) compared with the nine months ended 30 September 2023 and the total revenue of the Group (ex-MicroDental) increased by 9.0% (approx. HK$2,078.7 million) compared with the nine months ended 30 September 2023.

 

Revenue by Region
	Nine months ended 30 September 2024 (HK$ million)	Nine months ended 30 September 2023 (HK$ million)	Original currency growth rate YoY	Change in Currency YoY
Europe	1,200.1	1,028.2	+16.6%	+0.1%
North America	571.5	574.9	-0.6%^	-
Greater China	504.7	534.1	#	-1.2%
Australia	197.3	189.5	+5.5%	-1.3%
Others	48.0	36.5	+31.5%	-
Total Revenue	2,521.6	2,363.2	+6.7%
Total Revenue (ex-MicroDental)	2,078.7	1,907.5	+9.0%

^ The increase in sales in original currency of the North America market (ex-MicroDental) was approximately 7.9% and the decrease in sales in original currency of MicroDental was approximately 2.8%.

# The increase in sales in original currency of the Mainland China market was approximately 6.1% and the decrease in sales in original currency of the Hong Kong market was approximately 19.5%.

 

The double-digit increase in revenue in Europe clearly represents our outperformance in gaining market share, driven by the digitalization trend in the dental industry. During the period, the Group also experienced growth in North America (ex-Microdental) (+7.9%), Mainland China (+6.1%), Australia (+5.5%) and the Others (+31.5%) markets, reflecting our Group’s competitiveness during a challenging macro-economic environment.

 

The decrease in sales in MicroDental, our North America domestic labs business, was affected by the weakness in demand of implant dental treatments (a discretionary option for patients) and the softness in the US economy. However, this was offset by the increase in sales of our offshore-made products business supplied by Mainland China and Vietnam, as a result of the enhancement of competitiveness of offshore-made products following the adoption of digitalization practices.

 

As a result of the increase in sales volume in the Mainland China market following the full implementation of the volume-based procurement policy in the Mainland China market gradually since the second half of 2023, our Mainland China business reported a sales growth of 6.1% for the nine months ended 30 September 2024 compared to the same period of 2023. This also led to aggressive promotions for dental implant treatments by Mainland China dental clinics in Hong Kong (which experienced a notable decrease in patient visits in Hong Kong).

 

The increase in revenue from Australia was predominately due to the increase in sales volume as a result of the increase in market share driven by the digitalization trend in dental industry.

 

Sales Volumes (Number of Cases)

For the nine months ended 30 September 2024, the total sales volumes of the Group increased by approximately 5.4% to approximately 1,633,000 cases and the total sales volumes of the Group (ex-MicroDental) increased by approximately 6.5% to approximately 1,448,000 cases.

 

Digital Solution Cases

For the nine months ended 30 September 2024, the Group’s digital solution cases that are produced from its Mainland China production facilities increased to approximately 939,000 cases reflecting an increase of 57.6% for the same period in 2023 as a result of our clients’ increased adoption of intra-oral scanners.

 

Average Selling Price

For the nine months ended 30 September 2024, the average selling price of the Group’s dental prosthetic products across its markets was HK$1,442 per case, representing an increase of approximately 0.5%, and the average selling price of the Group’s (ex-MicroDental) dental prosthetic products across its markets was HK$1,321 per case, representing an increase of approximately 1.6% compared with same period in 2023.

 

The increase in average selling price was mainly due to the increment in price of our

products and the change in product mix offset by depreciation of Renminbi and

Australia Dollars against Hong Kong Dollars and the decrease in price of certain

dental prosthetic teeth products associated with the volume-based procurement for

dental implant treatment in the Mainland China.

 

Looking forward, the global digitalization trend continues to accelerate the consolidation of the dental prosthetics industry, allowing the Group to further increase its market share in the industry and our continued digital transformation is expected to improve our customers’ and patients’ experiences, further allowing the Group to differentiate itself from its competitors and outperform the industry peers.

 

The Group’s continued sales increase represents a solid execution across each of the Group’s markets operationally and financially, illustrating the Group’s ability to deliver strong financial results in a relatively stable operating environment characterized by consistent order volume growth, competitiveness in the industry, and close relationship with its clients and customers. The Group’s underlying fundamentals continue to be solid and we are well-positioned to capture further opportunities going forward.

 

About Modern Dental Group

 

Modern Dental Group Limited (Stock code: 03600.HK) is a leading global dental prosthetics provider, distributor and consultant with a focus on providing custom-made prostheses to customers in the growing prosthetics industry. Our product portfolio is broadly categorized into three product lines: fixed prosthetic devices, such as crowns and bridges; removable prosthetic devices, such as removable dentures; and other devices, such as orthodontic devices, sports guards, clear aligners, and anti-snoring devices.

 

Modern Dental Group has a global portfolio of respected brands, including Labocast, Permadental and Elysee Dental in Western Europe, YZJ Dental in China, Modern Dental Lab in Hong Kong, MicroDental in the United States, Modern Dental Pacific in Australia and New Zealand, Modern Dental SG in Singapore, Modern Dental TW in Taiwan, and Apex Digital Dental in Malaysia. We have grown these brands by providing premium and consistent quality products and superior customer service. We have more than 80 service centers in over 23 countries and serve over 30,000 customers.