SBC Medical Group Holdings Inc. Reports Growth Amidst Competitive Aesthetic Market
TL;DR
SBC Medical Group Holdings Inc. grew revenue by 6% to $205 million in 2024, outperforming competitors in the aesthetic medical market.
SBC Medical expanded its network with 43 new clinics, increasing patient visits by 15% and achieving 70% customer retention.
SBC Medical's focus on high-quality services and expansion into new cosmetic treatments aims to enhance customer experience and confidence.
SBC Medical's success in the competitive aesthetic market showcases the rising trend of male customers seeking hair replenishment procedures for growth potential.
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Despite facing increased competition, SBC Medical Group Holdings Inc. (NASDAQ: SBC) reported a 6% year-over-year growth in full-year 2024 revenue, reaching $205 million. The Japanese company, operating 251 aesthetic medical clinics, also saw a 14% increase in gross profit to $156 million and an 18% rise in net income to $47 million. The depreciation of the Japanese yen against the U.S. dollar and a decrease in Management Services due to the termination of staffing services were noted as challenges. However, the company's expansion into new areas of cosmetic surgeries and treatments, along with the addition of 43 new clinics, contributed to its growth. Annual patient visits grew by 15%, with a repeat customer rate exceeding 70%.
Yoshiyuki Aikawa, chairperson and CEO of SBC Medical, emphasized the company's commitment to developing a strong franchising structure and expanding both domestically and internationally. The aesthetic and cosmetic medical market in Japan is becoming increasingly competitive, with the global market valued at $156.39 billion in 2024 and expected to grow at a CAGR of 14.7% from 2023 to 2030. SBC Medical's strategy includes making aesthetic medicine more accessible, differentiating through advanced treatments and pricing, and expanding into the U.S. and Singapore markets.
Entering 2025, SBC Medical has $125 million in cash, which may be used for acquisitions in aesthetic medicine and adjacent fields. The company is also focusing on the growing interest among male patients in aesthetic procedures, particularly hair removal, and has adopted a more flexible fee structure for franchisees. Looking ahead to 2027, SBC Medical plans to expand into orthopedics, ophthalmology, fertility treatments, and hair loss treatment, aiming for continued revenue and EPS growth. Wall Street firm Sidoti forecasts a 10% year-over-year revenue growth to $223 million in 2026, with the company expected to operate 300 clinics by the end of that year.
For more details on SBC Medical's results and business strategy, interested parties can listen to the company's full-year 2024 financial results webcast at https://SBCYearEnd2024Webcast.
Curated from NewMediaWire
