SINGAPORE (Nov 12): UG Healthcare announced 1Q19 earnings have increased by 20.4% to $1.04 million, compared to $0.86 million in 1Q18.

Revenue for the first quarter ended September came in at $20.3 million, 11.4% higher than $18.3 million in the previous year, mainly due to an increase in the volume of gloves produced and sold resulting from the commencement of new production lines and higher sales through expansion of the group’s distribution networks.

In tandem with revenue growth, gross profit increased by 49.3% from $3.0 million in 1Q18 to $4.4 million in 1Q19. The relatively stable raw material prices and higher production efficiency lifted overall gross profit margin from 16.3% in 1Q18 to 21.8% in 1Q19.

The decrease in realised foreign exchange gain resulted in a slight decline in other income from $0.5 million in 1Q18 to $0.4 million in 1Q19.

Total operating expenses increased by 32.1% from $2.3 million in 1Q18 to $3.1 million in 1Q19.

This was mainly due to higher administrative expenses with the increase in personnel across all departments to accommodate the expansion in both manufacturing and distribution network in the United Kingdom, China, and Nigeria.

Share of profits from its German and US associates increased by 28.4% to $235,000 in 1Q19 compared to $183,000 in 1Q18

As at end-Sept, the group’s cash and cash equivalents stood at $5.38 million.

Lee Jun Yih , executive director of UG Healthcare says, “We will continue to work on optimising our capabilities in both upstream manufacturing and downstream distribution to maximise value from our integrated supply chain model. The Group is committed to improving values for all our stakeholders.”

Shares in UG Healthcare closed at 22 cents on Monday.