Gelonghui, May 30 | MODERN DENTAL (03600.HK) announced that for the three months ended March 31, 2024, the total revenue of the Group (approximately HK$837 million) increased by about 6.2% over the three months ended March 31, 2023. Driven by the digital trend in the dental industry, Europe recorded a double-digit increase in earnings, fully reflecting the company's outstanding performance in gaining market share. During the period, the Group also grew in North America (excluding Micro Dental) (+7.1%), Mainland China (+7.0%), Australia (+5.3%) and other (+36.5%) markets, reflecting the Group's competitiveness in a challenging macroeconomic environment.
The decline in sales of the company's local laboratory business Micro Dental in North America was mainly affected by weak demand for implant treatment (patients can choose at their discretion) and the weak US economy. However, this move was offset by the increase in sales volume of the company's modernDentalUSA business, which supplies products manufactured overseas through China and Vietnam, and is due to an increase in the competitiveness of products manufactured overseas after adopting a digitization process.
Sales in the mainland China market increased by 7.0% in the first quarter of 2024 due to the gradual and full implementation of volume procurement policies in mainland China in the second half of 2023, and sales in the first quarter of 2024 increased by 7.0% compared to the first quarter of 2023. This move has also led mainland Chinese clinics to actively promote dental implant treatment in Hong Kong (the number of patients attending the clinic has decreased significantly). The increase in revenue in Australia was mainly due to increased market share driven by digitalization trends in the dental industry, leading to increased sales.
For the three months ended March 31, 2024, despite the continuing challenges in the macroeconomic environment, the Group's multi-dimensional strategy and comprehensive product portfolio, covering high-priced and cost-effective dental treatments, enabled the Group to seize market opportunities and demonstrate the Group's ability to outperform competitors throughout the entire economic cycle by acquiring new customers and increasing its sales volume.