SINGAPORE (May 11): Cordlife Group reported its fourth straight quarterly earnings as higher revenue from key markets and contributions from a newly-acquired subsidiary lifted profit from operations.
The pioneer in Asia’s private cord blood banking industry reported earnings of $0.8 million in 3Q18, turning around from a net loss of $0.4 million in 3Q17.
Revenue for the current quarter came in at $17.7 million, 24.5% higher than $14.2 million, mainly contributed by India and Singapore as well as the inclusion of the group’s newly acquired subsidiary, Healthbaby Biotech (Hong Kong) Co.
Revenue per customer in India increased due to lower discounts given as more value-added services were provided to them. The increase in revenue in Singapore was mainly due to higher client deliveries. Healthbaby accounted for $1.8 million of the increase in revenue.
In line with the increase in revenue, cost of sales increased 16.6% to $5.84 million.
This brings 3Q18 gross profit to $11.9 million, 28.8% higher than $9.21 million in 3Q17, while gross profit margin rose to 67.0% from 64.8% last year.
The increase in gross profit margin was mainly due to more deliveries in Singapore, which has a higher margin compared to the rest of the countries, as well as lower discounts given in India, in lieu of more value-added services provided to clients.
Michael Weiss, CEO and executive director of Cordlife, says, “We will continue to drive profitability organically and explore earnings-accretive acquisition opportunities. With our extensive reach in Asia and amid growing public awareness of the therapeutic potential of stem cells for disease treatment, we are well placed for further growth.”
“In seeking to offer more holistic healthcare options to our target audience, we also intend to continue expanding our suite of non-invasive diagnostics services,” adds Weiss.
Shares in Cordlife closed 1 cent higher at 71 cents on Friday.