SBC Medical Group Reports Q4 and Full Year 2024 Financial Results
SBC Medical Group Holdings Incorporated (NASDAQ: SBC), a global leader in aesthetic practice management services and products, has announced its financial results for the fourth quarter and full year of 2024. The company, which owns and operates a growing network of aesthetic clinics, delivered strong performance, particularly in its annual results, driven by revenue growth and a significant increase in net income.
Fourth Quarter 2024 Financial Results
In the fourth quarter of 2024, SBC Medical reported total revenue of USD 44 million, reflecting a 29% decline compared to the same period last year. Despite the decrease in revenue, the company reported a gross margin of USD 34 million, down 22% from the previous year. Operating profit saw a sharp decline of 80%, totaling USD 5 million.
The company’s EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for Q4 2024 was USD 21 million, a 22% decrease from the previous year. However, the EBITDA margin improved slightly to 47%, compared to 43% in Q4 2023. Net income attributable to SBC Medical was USD 7 million, a 54% decrease year-over-year, with earnings per share dropping 58% to USD 0.06.
Despite the year-over-year decline in the fourth quarter, SBC Medical remains focused on its long-term growth strategy. The company’s EBITDA margin increase signals its ability to manage costs and improve operational efficiencies, even amid challenging market conditions.
Full Year 2024 Financial Performance
For the full year of 2024, SBC Medical recorded total revenue of USD 205 million, marking a 6% increase from the previous year. This growth was driven primarily by the expansion of its network of franchised clinics. Gross profit for the year rose by 14%, totaling USD 156 million, indicating stronger margins despite external challenges.
Operating profit for 2024 stood at USD 70 million, only slightly down by 1% compared to the previous year. EBITDA for the year increased by 8%, reaching USD 89 million, and the EBITDA margin remained stable at 43%. This growth was bolstered by one-time factors, such as stock-based compensation expenses totaling USD 13 million and foreign exchange effects amounting to USD 6.9 million. When adjusted for these factors, EBITDA grew by 32% year-over-year.
Net income attributable to SBC Medical was USD 47 million, an 18% increase from 2023. Earnings per share for the full year increased by 14% to USD 0.48, reflecting solid profitability and a positive return on equity of 28%, despite a slight decline of 4 percentage points compared to the prior year.
SBC Medical’s robust financial results reflect the strength of its expanding clinic network, which grew by 43 new partner clinics to 251 total clinics as of December 31, 2024. This expansion contributed to a 15% increase in the number of customers served, reaching 6.03 million in total. Additionally, the company reported a loyal customer rate of 71%, with a strong repeat customer base visiting franchised clinics two or more times.
CEO’s Perspective
Yoshiyuki Aikawa, CEO of SBC Medical, commented on the company’s performance, saying, “2024 was a momentous year for us. Our revenue grew by 6%, and we saw a dramatic 18% increase in net profit. We are proud to have served 6 million loyal customers through our expanding network of 251 clinics. Our repeat customer rate exceeded 70%, a testament to the quality of service we provide. We are excited about the future as we continue to capitalize on global demand for aesthetic medicine services, and we are committed to building a strong franchise structure to support both domestic and international growth.”
Aikawa also emphasized SBC Medical’s strategy to create long-term value for shareholders by expanding its market share in both domestic and international markets. “We are focused on sustaining our competitive advantage and seizing significant growth opportunities,” he added.
Key Business Developments in 2024
During 2024, SBC Medical faced increased competition in the Japanese market, particularly in the aesthetic medicine sector. The Japanese Ministry of Health, Labor and Welfare expressed concerns about the rapid expansion of aesthetic medicine businesses, which led to the closure of some clinics. Despite this, SBC Medical maintained its leadership position through an effective pricing strategy and successfully stimulated market expansion.
In addition to domestic growth, SBC Medical made significant strides in international markets. The company acquired Aesthetic Healthcare Holdings Pte. and its subsidiaries in Singapore, securing a strategic foothold in Asia. This acquisition provides SBC Medical with a new business hub in the region, enhancing its ability to serve the growing demand for aesthetic treatments in Asia.
Furthermore, SBC Medical launched the “SBC Wellness” employee benefits program and entered into a strategic partnership with B4A, a SaaS company that supports aesthetic clinics in Japan. These initiatives are expected to further strengthen SBC Medical’s position in the global aesthetic medicine market.
