Singapore O&G (SOG) reported a strong set of Q3 results with the company reporting year on year and quarter on quarter revenue growth.
Q3 revenue was up 18% year on year while net profit grew 23% year on year to SGD2.8 million.
The improved results is especially impressive since it was driven by organic growth and not acquisitions. Existing clinics benefited from a higher patient load and the ramp-up of two pediatricians who joined in 2017.
Q3 revenue grew 18% year on year and 5% quarter on quarter with growth across its O&G segment (SGD0.8 million), cancer (SGD0.5 million) and paediatrics (SGD0.1 million) segments. The dermatology segment was the only segment which did not grow in Q3 and was hit by a slight SGD0.1 million decline in revenue.
SOG’s share price performance has been weak over the last five months but the company’s prospects remains bright. SOG’s share of Singapore’s private birth deliveries is 8% so there’s plenty of room for growth even if Singapore’s birth rate remains flat. The paediatrics and cancer clinics have done well in 2018 and should continue to benefit from synergies with SOG’s core obsterics segment. Dermatology revenue has not grown in 2018 but I’m confident this segment will eventually pick up with referrals from other SOG clinics.Hang in there!