|Measures to curb the Covid-19 outbreak led to Cordlife Group not being able to organise many advertising and promotion activities.
Operating the largest network of cord blood banks in Asia with full stem cell banking facilities in six markets -- Singapore, Hong Kong, Indonesia, India, Malaysia and the Philippines -- Cordlife turned to online marketing through webinars and digital presentations.
Thus, its revenue stayed stable at S$14.5 million, dipping 0.5 % y-o-y. Gross profit inched up 0.5% to S$9.1 million.
“Our operations in most of the markets remain stable this quarter despite the tough operating environment. The implementation of social distancing measures and closed borders have limited our marketing activities. Nevertheless, our staff were able to use alternative online means to reach out to our clients."
-- Tan Poh Lan (photo),
Pre-Covid days, Cordlife would organise antenatal classes in hospitals where specialists like paediatricians and nutritionists shared information with pregnant women and aspiring mothers.
Now, it's being done through webinars which also serve as marketing platforms for Cordlife's services, said CEO Tan Poh Lan during an investor briefing on its 1Q2020 results.
Going online enables a wider reach across a few cities in any one country, for example, and leads to cost-savings from staff travel expenses and hosting of marketing events.
Ms Tan noted that as Cordlife's clientele is the midde-class and above, there is an intrinsic resilience in its business amid the economic upheaval caused by Covid-19.
Within bio-banking, about 80% came from upfront processing fees while the rest, from ongoing storage fees of biological samples.
The Indonesia and Philippines markets saw growth in revenue, according to Cordlife.
While diagnostics services segment accounted for about 5% of total revenue, it is seeing its growth trajectory extended from last year.
Net cash flow from operations remained strong at S$3.5 million, up from S$2.7 million a year ago.
The Group’s net cash has risen to S$58.0 million as at 31 March 2020, providing it the resources to make acquisitions when appropriate.
For the 1Q2020 Powerpoint presentation, click here.