UG Healthcare Corporation Limited FY25 Financial Results Analysis
UG Healthcare Corporation Limited (“UG Healthcare”) has released its financial results for the fiscal year ended 30 June 2025. The company, a vertically integrated own-brand manufacturer and distributor of UNIGLOVES® hand protection and hygiene products, demonstrated notable top-line growth, significant improvement in net loss, and ongoing strategic expansion, despite persistent macroeconomic headwinds and intensified market competition.
Key Financial Metrics and Performance Overview
| Metric |
2H FY25 |
2H FY24 |
FY25 |
FY24 |
YoY Change (FY) |
| Revenue (S\$ mil) |
71.41 |
65.51 |
144.07 |
115.21 |
+25.1% |
| Gross Profit (S\$ mil) |
15.91 |
17.75 |
34.74 |
25.87 |
+34.3% |
| Gross Margin (%) |
22.3% |
27.1% |
24.1% |
22.5% |
+1.6 pp |
| Net Loss (S\$ mil) |
(2.86) |
(1.08) |
(3.79) |
(6.06) |
-37.4% |
| LPS (Loss per Share, cents) |
(0.46) |
(0.17) |
(0.61) |
(0.97) |
-37.1% |
| Dividend |
– |
– |
– |
– |
N/A |
Historical Performance and Segment Analysis
UG Healthcare’s FY25 performance marks a significant rebound from the prior year:
- Revenue rose 25.1% to S\$144.1 million, driven by higher sales volumes and expanded distribution reach.
- Gross profit jumped 34.3% to S\$34.7 million, with gross margin up to 24.1% from 22.5%, reflecting improved pricing and product mix.
- Net loss narrowed by 37.4% to S\$3.8 million, although the company remains in the red.
By product segment, nitrile examination gloves led the growth with a 51.1% YoY revenue increase, while latex gloves saw modest growth of 3.4%. Ancillary products, including reusable gloves and masks, rose by 37.1% YoY. All key markets posted revenue growth except South America, which declined by nearly 40%. Europe and North America saw the strongest gains, supported by recent expansion and acquisitions.
Exceptional Items and Expenses
- Operating expenses increased 9.4% YoY to S\$35.6 million due to higher marketing, distribution, and staff costs linked to network expansion.
- Impairment of property, plant, and equipment, inventory write-offs, and foreign exchange losses totaled S\$2.0 million in 2H FY25.
- Finance costs surged 70.5% YoY, mainly from higher trade facilities and a loan for the Unigloves Germany acquisition.
- Other income dropped 45.8% YoY due to lower interest rates and deposit returns.
Balance Sheet Position
- Net asset value fell slightly by 2.9% to S\$158.7 million.
- Cash and bank balances declined 16.8% to S\$23.3 million due to expansion and acquisition.
- Short-term borrowings increased 35.5%, reflecting a more leveraged position to support growth.
Market and Strategic Developments
- UG Healthcare continued to expand its distribution footprint, particularly in Germany, Spain, and the USA, strengthening its position in developed markets.
- The company collaborates with cost-effective manufacturers to supplement its product range and increase flexibility.
- Downstream and upstream integration remains a core strategy, supporting supply chain resilience and responsiveness to market trends.
Chairman’s Statement
“The ongoing global trade tensions and tariff uncertainty, coupled with rapidly changing market dynamics, continue to present significant challenges for businesses in making long-term decisions about their supply chains. We believe this situation fosters a preference for holding strategies, which in turn stimulates competition and currency volatility, thereby impeding a recovery towards market equilibrium. As we strategically expanded our downstream distribution network to optimise our enhanced portfolio of proprietary UNIGLOVES® branded hand protection solutions, along with non-glove hygiene and healthcare ancillary products, we encountered currency volatility… Nonetheless, we remain confident that the flexibility and resilience of our integrated own brand approach, despite raising our operating expenses, are essential in the short term, and we will continue to foster sustainable growth as we work to address macroeconomic challenges.”
Tone: The statement is cautiously optimistic, acknowledging persistent challenges but expressing confidence in the group’s strategy and market positioning.
Conclusion and Investment Recommendation
Overall Assessment: UG Healthcare delivered a much-improved financial performance in FY25, with strong revenue growth, improved margins, and a significantly narrowed net loss. The core business is showing resilience through integrated manufacturing and distribution, and recent expansion initiatives have driven growth in key developed markets. However, the company remains loss-making, faces elevated operating and finance costs, and is exposed to macroeconomic and currency risks.
- If you are currently holding the stock: Consider maintaining your position if you are a long-term investor and can tolerate continued volatility. The company’s improving fundamentals, strategic expansion, and narrowing losses are encouraging, but a return to profitability is still pending. Monitor for sustained margin improvement and further progress toward net profitability.
- If you are not holding the stock: It may be prudent to wait for clearer evidence of consistent profitability and margin stabilization before initiating a new position. The company is making notable progress but remains exposed to external risks and is not yet generating shareholder returns.
Disclaimer: This analysis is based strictly on information disclosed in the company’s FY25 financial report and does not constitute investment advice. Please consult a licensed financial advisor before making investment decisions.
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