SBC Medical Group Holdings (“SBC”) is a diversified healthcare group headquartered in Japan, specialising in aesthetic medicine, dermatology, and wellness services through a network of branded franchise clinics including SBC, Rize, Gorilla, and AHH Clinics. The Group is committed to clinical excellence, innovation, and sustainable value creation for stakeholders.
Q1 FY2025 Summary:
SBC began its financial year on a stable footing, with its first quarter FY2025 results reflecting the impact of strategic divestments alongside firm underlying profitability. Despite a top-line contraction, the Group delivered stronger earnings, underscoring the benefits of cost rationalisation and improved operational focus.
For the quarter ended 31 March 2025, the Group reported total revenue of USD47 million, representing a 14% decline year-on-year. This was largely attributed to the termination of its staffing business, which accounted for a USD5.6 million reduction in revenue—as well as the deconsolidation of Skynet Academy and SBC Kijimadaira Resort, which shaved a further USD2.9 million off the topline. Excluding these one-off impacts, revenue would have seen a modest increase, indicating stability in the Group’s core operations.
Net profit, however, rose 15% year-on-year to USD22 million, supported by the reversal of life insurance maturities amounting to USD8.7 million. Earnings per share improved 5% to USD0.21. EBITDA for the period remained steady at USD25 million, while the EBITDA margin widened by six percentage points to 52%, reflecting improved cost efficiency despite the lower revenue base.
Operationally, SBC continued to expand its clinic network. As at end-March, the Group operated 251 franchise clinics, an increase of 36 from the previous quarter, marking 17% growth. Customer acquisition remained strong with 6.1 million unique customers reported, a 14% year-on-year increase, while repeat visit rates hovered at 71%. However, average revenue per customer moderated to USD181, reflecting promotional activity and pricing strategies aimed at customer retention.
The Group’s clinic brands, including SBC, Rize, Gorilla, and AHH Clinics, saw mixed performance. SBC-branded clinics generated USD206 million in revenue (down 14% YoY), while the Rize and Gorilla franchise contributed USD103 million (down 10% YoY). Nonetheless, the Group’s total franchise clinic revenue stood at USD265 million, softening by just 3% from a year earlier.
Looking forward, SBC is expected to maintain its growth trajectory through clinic network expansion, digital platform enhancements, and operational streamlining. While short-term revenue variability may persist as portfolio rebalancing continues, the Group’s disciplined execution and focus on core profitability set a promising tone for the remainder of FY2025.
