Regional expansion fuels Cordlife's growth in FY14

Client deliveries jumped to 15,880.

Mainboard-listed healthcare firm Cordlife Group reported a 41.5% y-o-y increase in revenue to SGD49m for FY14. Revenue growth was aided by Cordlife's recent expansion into India, Indonesia and Philippines.

According to OSK DMG, the expansion helped boost Cordlife's client deliveries to 15,880 in FY14 from 7,700 in FY13.

“Cordlife's reported net profit increased to SGD30m FY14 from SGD13.5m a year earlier. Excluding non-core and one-off items, Cordlife's FY14 net profit was SGD6.4m. Cordlife's selling, marketing and administrative expenses increased significantly due to one-off costs related to its expansion into India, Indonesia and Philippines (growth markets),” noted the report.

Here’s more from OSK DMG:

Low industry penetration rates in growth markets should result in higher client deliveries for Cordlife and continue to drive earnings growth going forward. Margins should also improve aided by 1) more efficient cost management, 2) lack of one-off cost related to venturing into new markets, and 3) higher royalty income from its partners Stemlife and China Cord Blood Corporation.