SG Morning Highlights | Cordlife Reports Net Loss of S$11.6 Million in Q1 2024 Due to Refunds

Singapore shares opened higher on Wednesday. The $FTSE Singapore Straits Time Index (.STI.SG)$ rose 0.25 percent to 3317.38 as at 9:14 am.

$Cordlife (P8A.SG)$: Cordlife Group, a private cord-blood bank, reported a net loss of S$11.6 million for the three months ended Mar 31, reversing a net profit of S$1.2 million in the corresponding quarter the year before. The company attributed the reversal in revenue to the financial impact of handing out refunds to its customers whose stored cord-blood samples were compromised as a result of not having been stored at the correct freezing temperature. The group's revenue was recorded as minus S$240,000 in Q1 2024, compared to S$14.1 million in the black in Q1 2023. The refund had a financial impact of about S$9.7 million on revenue, which included the recognition of S$0.5 million in contract liabilities related to future storage obligations. Excluding the financial impact of the refund, the group's revenue for Q1 2024 would have been approximately S$9.4 million, a 33% decline from the year-ago figure. The group's net cash position remains healthy at S$78.8 million.

$SIA (C6L.SG)$: Singapore Airlines has offered passengers on the SQ321 service from London to Singapore on 20 May, who suffered minor injuries during a catastrophic turbulence incident, US$10,000 in damages, in accordance with the Montreal convention. One passenger died and 104 others were injured when the airline lost 54 metres in altitude in less than five seconds, sending passengers crashing into the Boeing 777-300ER's cabin ceiling. The airline has already refunded the cost of the flight and given S$1,000 (US$739) to each passenger to meet immediate expenses, as well as covering medical bills and arranging for family to be with loved ones. The airline has issued stricter rules regarding seatbelts and in-flight catering.

$Sabana Reit (M1GU.SG)$: Biotechnology firm GDMC, the tenant of Sabana Industrial Real Estate Investment Trust's premises at 30 and 32 Tuas Avenue 8, has been placed in provisional liquidation. The tenant accounted for about 2.4% of the Reit's total gross rental income for the financial year ended Dec 31, 2023. Sabana Reit's manager expects the overall impact to be about 2.3% of its pro forma distribution per unit in FY 2023. The Reit is taking legal advice and will do what it can to limit losses, including entering the premises, marketing the asset to prospective tenants, and offsetting outstanding rental payments with the tenant's security deposit. The tenant paid rent up to April.