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8 Things Investors Should Know About Singapore O&G Ltd’s Latest Earnings

On Thursday, Singapore O&G Ltd (SGX: 41X) released its first-quarter result for 2019. As a quick introduction, Singapore O&G is a healthcare company that operates mainly in four segments: Obstetrics and Gynaecology, Cancer-related, Paediatric and Dermatology.

Here, let’s look at eight quick points to summarise its latest earnings.

  1. Revenue for the quarter was up by 6.5% year-on-year to S$8.7 million.
  2. Yet, profit from operations fell 14.4% year-on-year to S$2.5 million, mainly driven by higher expenses.
  3. Similarly, net profit declined by 15.5% year-on-year to S$2.1 million.
  4. Operating margin fell from 35.9% a year ago to 28.8% in the latest quarter, mainly due to an increase in consumables and employee costs.
  5. Net cash generated from operating activities was up from S$3.6 million last year to S$4.1 million in this quarter. The improvement in cash flow was due to favourable working capital movements.
  6. As of 31 March 2019, Singapore O&G had cash and cash equivalents of S$25.1 million with zero debt. This was an improvement from S$21.5 million in cash and cash equivalent and no debt, as of 31 December 2018.
  7. The company delivered revenue growth of S$0.2 million, S$0.1 million and S$0.5 million for its Obstetrics & Gynaecology, Cancer-related and Paediatrics segments, respectively. On the other hand, Dermatology segment registered a S$0.3 million decline in revenue.
  8. In terms of outlook, here’s what the company said:

“In 2019, we continue to grow our Paediatrics and O&G segment with the addition of a Paediatrician and an O&G medical specialist in February and May 2019 respectively. This would position the Group well to grow strategically.

Barring any unforeseen circumstances, the Board of Directors expects the Group to remain profitable in the next reporting period and in the next 12 months.”

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned. Motley Fool Singapore recommended the shares of Singapore O&G.