SBC Medical Group Holdings Inc. has reported impressive first-quarter financial results, highlighting its strategic transformation in the competitive cosmetic surgery market. The company revealed a 5% increase in earnings per share and expanded its EBITDA margins to 52%, signaling strong operational efficiency and market adaptability.
Despite a challenging marketplace in Japan, SBC Medical demonstrated significant growth, increasing its clinic network to 251 locations—36 more than the previous year. The company also experienced a 14% customer base expansion, reaching 6.1 million clients, with 71% of customers returning to franchisee clinics multiple times during the quarter.
CEO Yoshiyuki Aikawa emphasized the company's strategic focus on expanding Medical Corporations (MCs), which help cosmetic practitioners operate clinics while maintaining regulatory compliance. Although revenue decreased 14% due to business divestitures, net income rose 15% year-over-year, underscoring the company's operational resilience.
SBC Medical's growth strategy centers on two key approaches: making aesthetic medicine more accessible and differentiating itself through advanced treatments and competitive pricing. The company plans to extend its reach into U.S. and Singaporean markets, positioning itself to capitalize on the rapidly expanding global cosmetic surgery market.
The global cosmetic surgery market, valued at $122.08 billion in 2022, is projected to grow at a compound annual growth rate of 14.7% through 2030. Recognizing this potential, SBC Medical has initiated a $5 million share buyback program, demonstrating confidence in its business performance and future opportunities.
The buyback program, running from May 20, 2025, to May 20, 2026, will be funded through excess cash and future free cash flow. The company believes its current stock price does not fully reflect its growth potential and market position. Additionally, SBC Medical plans to balance share repurchases with potential future stock-based compensation and is considering dividend distributions to enhance shareholder value.
By strategically expanding its clinic network, optimizing pricing structures, and investing in its own shares, SBC Medical is carefully navigating the dynamic aesthetic medicine landscape. The company's first-quarter performance suggests a promising trajectory for continued growth and market leadership in the evolving cosmetic surgery industry.
