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Cordlife in the red in Q1 due to fair value loss on investment
CORDLIFE Group on Friday posted a S$3.6 million loss for its first quarter ended Sept 30, 2014, compared to a net profit of S$8.7 million a year ago.
This was mainly due to a S$4.9 million fair value loss on its investment in China Cord Blood Corporation (CCBC).
This fair value loss was computed based on the changes in CCBC's last traded price on June 30, 2014 of US$5.52, and Sept 30, 2014 of US$4.89. This contrasted against a year ago, when it enjoyed a fair value gain on CCBC of S$3.1 million.
Revenue rose 17 per cent to S$13.3 million. This was due to an increase in the number of client deliveries, thanks to better awareness of the brand as a result of more marketing and client acquisition efforts.
"In particular, there was an increase in marketing spend in the group's Indian subsidiary to increase brand awareness amongst its prospective clients and establish its presence in more cities," it said.
The consumer healthcare company reported losses per share of 1.36 Singapore cents, versus earnings per share of 3.73 Singapore cents a year ago.
It ended trading at S$0.91, down two Singapore cents.