SINGAPORE (Nov 9): Cordlife Group has swung back to profitability in 1Q18, posting earnings of $649,000 compared to a loss of $574,000 in 1Q17.
Revenue for the first quarter ended September was 13.2% higher at $16.6 million from $14.7 million a year ago, mainly due to an increase in newborn deliveries to 6,700 in 1Q18 from 6,300 in 1Q17.
The increase in revenue was also partly due to lower discounts given in India and the Philippines in lieu of more value-added services provided to clients in these countries.
In line with the increase in revenue, cost of sales increased 8.2% to $5.58 million compared to $5.16 million last year,
Hence, 1Q18 gross profit amounted to $11.0 million, 15.9% higher than $9.50 million recorded in 1Q17, while gross profit margin increased to 66.3% from 64.8% last year.
Selling and marketing expenses increased 8.6% to $5.27 million from $4.86 million in the previous year.
Administrative expenses also increased 13.5% to $5.29 million compared to $4.66 million in the same period last year, due to an increase in foreign exchange loss of $282,000, which is mainly contributed by the weakening of the USD against the SGD.
There was also an increase in information technology expense and amortisation expense, as the group continues to invest in technology and automation to boost efficiency and efficacy.
For 1Q18, the group did not incur any finance costs, compared to finance costs of $995,000 in 1Q17, due to the full redemption of the Notes in Dec 2016.
Looking forward, the group will continue to explore acquisition and investment opportunities, expand its diagnostics business, as well as actively market its banking and diagnostics services in Asia.
The group expects its core business to remain profitable in FY18.
Shares in Cordlife closed 2 cents lower at 80 cents on Friday.
