CORDLIFE Group has issued a profit warning saying it expects to report a net loss for the first fiscal half of the year versus a net profit in the prior year, based on a preliminary review of the group’s draft unaudited H1 FY2024 results.
More details will be disclosed when the group announces its unaudited first half results on or before Aug 14, said the cord-blood bank on Monday (Aug 12).
While Cordlife will recognise the financial impact of refunds and fee waivers related to high-risk tanks for the latest period, the group maintained that investigations “are ongoing and there is no certainty on the outcome of the Ministry of Health (MOH)’s ongoing investigations”.
In June, Cordlife reported a net loss of S$11.6 million for the three months ended Mar 31, reversing from a net profit of S$1.2 million in the corresponding quarter the year before.
Its Q1 revenue had reversed to minus S$240,000 after accounting for the financial impact of refunds to its customers, whose stored cord-blood samples were compromised as a result of not being stored at the correct freezing temperature.
Cordlife was issued its first notice to stop collecting new cord blood and human tissue on Nov 30, 2023, after MOH checks found that some of the company’s cord-blood storage tanks were kept at temperatures above acceptable limits.
On May 27 this year, the ministry issued a new notice extending the suspension for an additional three months upon conducting further inspections.
Shares of Cordlife were trading flat at S$0.147 as at 9.04am on Monday, after its profit warning was issued.
