SBC Medical Revenue Declines On Franchise Fee Restructuring

KUALA LUMPUR, May 15 (Bernama) -- SBC Medical Group Holdings Incorporated (SBC Medical) reported total revenue of US$43 million for the first quarter ended March 31, 2026, down nine per cent year-on-year, mainly due to changes in its franchise fee structure implemented last year. (US$1=RM3.93)

The company posted a net income attributable to US$11 million, down 47 per cent year-on-year, while net income margin narrowed to 26 per cent from 45 per cent a year earlier. Earnings per share declined 48 per cent to US$0.11.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) for the company fell 26 per cent to US$18 million, with EBITDA margin easing to 43 per cent from 52 per cent previously.

SBC Medical Chairman and Chief Executive Officer, Yoshiyuki Aikawa said the revenue decline was primarily attributable to a strategic structural reform introduced in April 2025 involving revisions to franchise fees.

“Excluding this structural change, the performance of our core business remained solid,” he said in a statement.

Aikawa added that SBC Medical will continue to expand its multi-brand strategy in aesthetic dermatology, strengthen its non-aesthetic medical business, and reinforce its operational foundation in overseas markets.

The company also plans to pursue opportunities in the longevity market and enhance services through the utilisation of artificial intelligence, he said.

Return on equity stood at 18 per cent as of March 31, a decline of 23 percentage points year-on-year.

SBC Medical operated 284 franchise locations as of March 31, an increase of 33 outlets from a year earlier, while customer numbers for the past 12 months rose 10 per cent year-on-year to 6.76 million.

-- BERNAMA