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Cordlife's nine-month net profit rises 39.6% to S$5m
CORDLIFE Group's net profit for the nine months ended Sept 30 rose 39.6 per cent year on year, despite a fall in revenue, it said in an exchange filing on Thursday evening.
The cord blood bank company said in a business update that net profit grew to S$5 million for the nine months, from S$3.6 million in the year-ago period, mainly driven by government relief measures for Covid-19, and lower tax, administrative and marketing expenses.
It recognised an aggregate of S$1.2 million in government relief measures for Covid-19, given in Singapore and Hong Kong, in this quarter. Without the Covid-19 government grants, net profit after tax would have amounted to around S$3.8 million, which represents a 6.5 per cent year-on-year increase, Cordlife said.
Revenue for the nine months fell 17.6 per cent to S$37.9 million, from S$46 million in the year-ago period, due to a decrease in the number of new samples processed and stored in all of the group's operating markets as a result of the pandemic.
"The pandemic has tightened consumer spending and made service deliveries more challenging as many countries imposed movement and border restrictions to stem the spread of Covid-19," Cordlife said.
It noted that the situation has generally resulted in the tapering of new customer sign-ups for banking services during the nine months, and the revenue trend may continue in the last quarter of this year.
"Any impact on revenue is however likely to be cushioned in part by government grants relating to Covid-19," it added.
Last month, Cordlife announced that its then-chairman and independent director Goh Jin Hian had quit its board to "devote more time to his personal affairs". The announcement came after judicial managers of Inter-Pacific Petroleum sued Dr Goh in relation to an alleged breach of director's duties.
Cordlife shares were trading flat at 34 Singapore cents as at 9.48 am on Friday.