Cordlife posts third straight quarter of profit

CORDLIFE Group reported a third consecutive quarterly net profit as its stem cell banking business continues to make inroads in its key markets.

It attributed this to growing public awareness and appreciation of pre-emptive healthcare in Asia.

On Monday, the consumer healthcare company said it clocked net profit of S$736,000 for the quarter ended Dec 31, 2017, compared to a net loss of S$2.28 million in the year-ago period.

The turnaround came as revenue rose 7.6 per cent year-on-year to S$16.4 million in the quarter, driven mainly by higher contributions from India, Singapore and the Philippines.

By reducing discounts in India and raising prices in the Philippines, Cordlife managed to boost revenue per customer in these markets.

The group said that revenue in Singapore went up as a result of more newborn deliveries, which helped lift its overall gross profit margin to 66.8 per cent from 62.8 per cent a year ago. Its bottom line for the quarter also benefited from an absence of certain non-operating costs.

For the six months ended Dec 31, 2017, the group marked a swing to profitability, with a net profit of S$1.39 million, compared to a net loss of S$2.85 million in the year-ago period.

The improvement came on the back of a 10.4 per cent increase in revenue to S$32.98 million and an absence of non-operating expenses related to the fixed-rate notes and their redemption.

The group said its recent acquisition of HealthBaby Biotech (Hong Kong) Co gives the group control over two established brands in Hong Kong - "HealthBaby" and "Cordlife" - and is expected to enhance its overall profitability from fiscal 2018. It will also continue to expand its diagnostics business.

Shares of Cordlife closed one Singapore cent higher at 78 cents on Monday.