SINGAPORE (May 9): Singapore O&G (SOG) has reported earnings of $2.1 million for 1Q19, down 15.5% from $2.5 million a year ago due to higher operational expenses.
This translates earnings per share (EPS) of 0.44 cent, down from 0.52 cent in 1Q18 although net asset value (NAV) per share grew to 9.79 cents as at end-March from 9.35 cents as at end-2018.
Revenue for the quarter grew 6.5% on-year to $8.7 million from $8.2 million previously as the group achieved revenue growth across its Obstetrics & Gynaecology (O&G), Cancer-related and Paediatrics segments.
Growth in contributions from these segments collectively helped to offset a revenue decline in the Dermatology segment, which was attributed to an increasingly competitive industry landscape.
Expenses for consumables and medical supplies used rose 21.5% to $1.6 million from $1.3 million previously, mainly due to higher medication sales and consumables used in procedures across all segments.
Employee remuneration expenses grew 19.4% to $3.8 million due to new clinics PAED-Gastro, SOG Dermatology (Gleneagles) and PAED-Glen, as well as a higher incentive bonus for a few specialist medical practitioners.
Meanwhile, depreciation expenses more than doubled $0.5 million from $0.2 million, attributable to depreciation recognised for right-of-use (ROU) assets from the adoption of the SFRS (I) 16 accounting standard.
Other operating expense fell 31.7% to $0.5 million due to lower rental expense arising from the adoption of SFRS (I) 16, offset in part by higher advertising, consultancy fees, office supplies and other administrative expenses.
As at end-March, the group’s cash and cash equivalents stood at $25.1 million compared to $21.5 million as at end-Dec.
“As we continue to see growing demand for our O&G services, we recruited our seventh O&G medical specialist, Dr. Clara Ong in May this year… At the same time, the group is also looking to sharpen the competitive edge of our Dermatology segment to further boost this segment,” says Beh Suan Tiong, executive chairman of SOG.
Shares in SOG closed 1.37% lower at 36 cents on Thursday.
