Cordlife sees $1.6m third-quarter loss on 31% drop in revenue

SINGAPORE - Cordlife remained in the red for the third quarter ended September after falling into a net loss position for the first half of the fiscal year.

On Nov 15, the embattled cord blood bank reported a $1.6 million third-quarter net loss versus a net profit of $1.4 million in the year-ago period.

Revenue fell 31 per cent to $10.1 million from $14.7 million on lower contributions from Singapore, which recorded only 15 days of operations for the period.

This comes after

Cordlife was allowed to resume its cord blood banking services on a limited basis

from Sept 15, more than eight months after the company was directed by the Ministry of Health (MOH) to stop its services due to lapses found at its storage facility.

For the nine-month period, the group recorded a net loss of $13.9 million as opposed to a $3.6 million profit in the prior year, while revenue declined 55.1 per cent to $19.3 million from $43 million previously.

The group said it remains focused on achieving full resumption of its Singapore operations, having improved its processing and storage facility in Yishun by increasing laboratory and technical personnel, as well as by strengthening operational protocols.

Highlighting Cordlife’s “more robust capabilities and stronger operating procedures”, group executive director Chen Xiaoling said the company continues to implement strict operating protocols “while working to regain the full trust of all stakeholders”.

Group chief executive Ivan Yiu said: “Having met MOH’s criteria to resume our cord blood banking services in a controlled manner in Singapore, we are confident the group is on the path to rebuilding our business foundation to drive business recovery.”

Shares of Cordlife closed 0.8 cent, or 5.4 per cent, higher at 15.6 cents on Nov 15.

THE BUSINESS TIMES