Cordlife's net profit soared 192.7% to S$5.6m
Check out what boosted this growth.
In a release, Cordlife Group Limited reported a 192.7% rise in net profit to S$5.6 million for the three months ended December 31, 2012 (“2Q 2013”), compared to S$1.9 million for the last corresponding period. This was achieved on the back of a 23.9% increase in revenue to S$8.8 million, which was driven by an increase in the number of client deliveries.
In addition, the Group recorded a one-time disposal gain of S$2.7 million from the disposal of its 10% interest in China Stem Cells (South) Company Limited in 2Q 2013.
Even excluding this disposal gain, the Group achieved a 54.5% growth in net profit at S$3.0 million, in line with higher sales achieved in 2Q 2013.
Revenue from rendering of services increased by 23.9% to S$8.8 million in 2Q 2013, as compared to S$7.1 million in 2Q 2012. This was largely due to an increase in the number of client deliveries, from approximately 1,900 in 2Q 2012 to 2,300 in 2Q 2013.
Correspondingly, gross profit increased 25.5%, or S$1.3 million, to S$6.2 million in 2Q 2013. The Group continued to register a high gross profit margin of 70% in this quarter. Cost of sales increased by 20.3%, or S$0.4 million, in line with the rise in turnover.
Overall, in line with business expansion, selling and marketing expenses increased 21.3% or S$0.4 million, while administrative expenses rose marginally by 7.3% or S$0.1 million.
The administrative expense increase was offset by the absence of a one-off IPO listing expense of S$0.3 million incurred in 2Q 2012. Other operating income fell S$14,000 mainly due to the sale of consumables that did not recur in 2Q 2013.
The Group’s share of results in its associate increased by 43.4% to S$0.8 million. This comprised one month of the Group’s 10% indirect shareholding in China Stem Cells (South) Company Limited and two months of contributions from the Group’s 10% direct stake in China Cord Blood Corporation, which the Group acquired in November 2012.
As a result, net profit of the Group rose from S$1.9 million in 2Q 2012 to S$5.6million in 2Q 2013, representing a 192.7% increase. As at December 31, 2012, the Group maintained a strong balance sheet, with a cash position of S$24.3 million (inclusive of S$17.5 million in fixed deposits and exclusive of pledged fixed deposits of S$0.3 million).