SINGAPORE (May 10): UG Healthcare reported 3Q18 earnings increased 16.7% to $1.10 million, compared to $0.95 million in 3Q17.

This brings 9M18 earnings to $3.01 million, 28.8% higher than $2.33 million in 9M17.

Revenue for the quarter was 10.1% higher at $19.4 million, compared to $17.6 million in the previous year, mainly due to increase in production and sales of gloves.

Cost of sales increased by 12.2% y-o-y to $16.0 million, bringing 3Q18 gross profit to $3.32 million, 1.0% higher than $3.28 million in 3Q17.

The group’s gross profit margin decreased to 17.1% from 18.7% in 3Q17, mainly due to a delay in increasing the sales price of products which were committed to customers few months before delivery.

Other income increased by 55.2% to $0.68 million from $0.44 million a year ago, mainly due to increase in realised gain from foreign exchange.

Marketing and distribution expenses more than doubled to $0.62 million, compared to $0.30 million last year, while administrative expenses increased 24.8% y-o-y to $2.14 million, as the group continued to expand its distribution network.

Other expenses dropped 97.1% to $0.03 million from $0.97 million in the previous year, as the Group continued to expand its distribution network.

Lee Jun Yih, executive director of UG Healthcare, says, “We will continue to drive growth through higher efficiency in our upstream manufacturing capabilities and better match the production volume to the increasing demand for our proprietary ‘Unigloves’ range of disposable gloves as we broaden our distribution network through our downstream distribution companies.”

Shares in UG Healthcare closed 2 cents lower at 20 cents on Thursday.