(30 May 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 three months ended 31 March 2024.

 

During the three months ended 31 March 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.

 

For the three months ended 31 March 2024, the Group’s digital solution cases that are produced from its Mainland China production facilities increased to approximately 281,000 cases, reflecting an increase of 63.4% compared with the three months ended 31 March 2023, as a result of our clients’ increased adoption of intra-oral scanners.

 

For the three months ended 31 March 2024, the total revenue of the Group was approximately HK$837.0 million, increased by approximately 6.2% compared with the three months ended 31 March 2023. The total revenue of the Group (ex-MicroDental) was approximately HK$690.3 million, increased by approximately 9.4% for the same period in 2023. 

 

 

Revenue by Region
	Q1 2024 HK$ million	Q1 2023 HK$ million	Original currency growth rate YoY	Change in Currency YoY
Europe	409.4	347.6	+16.6%	+1.0%
North America	187.4	195.2	-4.0%^	-
Greater China	164.1	173.7	#	-3.6%
Australia	61.9	61.3	+5.3%	-4.1%
Others	14.2	10.4	+36.5%	-
Total Revenue	837.0	788.2	+6.2%
Total Revenue (ex-MicroDental)	690.3	630.9	+9.4%

^ The increase in sales in original currency of the North America market (ex-MicroDental) was approximately 7.1% and the decrease in sales in original currency of MicroDental was approximately 6.7%.

# The increase in sales in original currency of the Mainland China market was 7.0% and the decrease in sales in original currency of the Hong Kong market was 16.6%.

 

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) (+7.1%), Mainland China (+7.0%), Australia (+5.3%) and the Others (+36.5%) 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 Modern Dental USA, our offshore-made products business supplied by 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 7.0% in the first quarter of 2024 compared to the first quarter 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).

 

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.

 

For the three months ended 31 March 2024, the total sales volumes of the Group was approximately 531,000 cases, increased by approximately 6.0% year-on-year. The total sales volumes of the Group (ex-MicroDental) was approximately 469,000 cases, increased by approximately 7.8% year-on-year. The average selling price of the Group’s dental prosthetic products across its markets was HK$ 1,451 per case, representing a decrease of approximately 1.3% for the same period in 2023. The average selling price of the Group’s (ex-MicroDental) dental prosthetic products across its markets was HK$1,332 per case, remained at the same level as the same period in 2023. The decrease in average selling price was mainly due to the 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 offset by the increment in price of our products and the change in product mix.

 

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.

 

 

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.