SINGAPORE (Feb 12): Cordlife Group has swung back to profitability in 2Q18, posting earnings of $0.74 million, compared to a loss of $2.28 million in 2Q17.
Revenue for the quarter came in at $16.4 million, 7.6% higher than $15.2 million a year ago, mainly contributed by India, the Philippines and Singapore.
Revenue per customer in India and the Philippines increased due to lower discounts given in India and higher contract prices in the Philippines. These pricing revisions were provided in lieu of more value-added services provided to clients in these countries. The increase in revenue in Singapore was mainly due to more client deliveries
The overall increase in revenue was slightly offset by fewer deliveries in other markets, resulting in a decrease in total client deliveries from 6,700 in 2Q17 to 6,400 in 2Q18.
Cost of sales was 4.0% lower at $5.44 million, compared to $5.67 million last year, in line with fewer client deliveries.
Hence, gross profit for 2Q18 stood at $10.9 million, 14.5% higher than $9.56 million in the same period last year.
Other operating income increased by 51% to $0.38 million from $0.25 million in the previous year, due to a grant from SPRING of approximately $131,000 in relation to the development of a new employee performance and talent management software. There was no such grant income in 2Q17.
However, finance income decreased by 53.2% to $0.22 million from $0.47 million a year ago, due to lower funds placed in fixed deposits.
During the quarter, the group recorded a gain in foreign currency translation of $0.76 million, compared to a loss of $0.43 million last year.
Looking ahead, the group expects to remain profitable for FY18, as it seeks to expand its base of clients in the eight Asian markets it currently operates in.
Shares in Cordlife closed 1 cent higher at 78 cents on Monday.
