UG Healthcare strengthens financial performance with strategic downstream distribution network expansion
achieved through collaborating with reliable manufacturers to produce under its
and emerging trends
KEY FINANCIAL HIGHLIGHTS:
FYE 30 June (S$ mil) | 2H FY25 | 2H FY24 | YoY Change | FY25 | FY24 | YoY Change |
Revenue | 71.41 | 65.51 | 9.0% | 144.07 | 115.21 | 25.1% |
Gross profit | 15.G1 | 17.75 | (10.4)% | 34.74 | 25.87 | 34.3% |
Gross margin | 22.3% | 27.1% | (4.8) pp | 24.1% | 22.5% | 1.6 pp |
Loss before tax | (2.1G) | (2.93) | (25.2)% | (3.44) | (9.09) | (62.2)% |
Loss after tax | (2.34) | (2.77) | (15.6)% | (4.42) | (8.78) | (49.7)% |
Net loss (1) | (2.86) | (1.08) | > 100.0% | (3.7G) | (6.06) | (37.4)% |
LPS (2) (cents) | (0.46) | (0.17) | > 100.0% | (0.61) | (0.97) | (37.1)% |
Notes:
* 1H denotes 6 months and FY denotes 12 months ended 30 June; pp denotes percentage points.
Net loss attributable to owners of the Company.
- LPSwas computed based on the average weighted number of shares of 623.8 million for 2H FY25, 2H FY24, FY25 and FY24.
pressures have intensified market competition. The improvement in financial performance was attributed to higher sales volumes and a relatively stable average selling price across a broadened product portfolio of disposable examination gloves and ancillary products, supported by an expanded downstream distribution network. This improvement was, however, counterbalanced by an increase in operating expenses due to the strategic expansion of the downstream distribution network, as well as expenses comprising impairment of property, plant and equipment, inventory written off, and realised foreign exchange losses resulting from the depreciation of the US dollar and Chinese yuan against the Singapore dollar, totalling approximately S$2.0 million in the second half of FY25.
Commenting on the FY25 financial performance, Mr. Lee Jun Yih, Joint CEO and Finance Director of UG Healthcare, said,
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 stemming from the countries in which we operate. This volatility affected not only our profitability but also influenced our strategic planning. Nonetheless, we remain confident that the flexibility and resilience of our integrated own brand
Currently, the Group continues to manufacture premium-quality disposable examination glove products at its upstream manufacturing facilities, and it also actively collaborates with cost-effective manufacturers to supply both disposable and reusable glove products, as well as non-glove hygiene and healthcare consumables for infection control and dental care, to enrich its extensive range of products. Through its entrenched downstream global distribution network, the Group markets and sells these products under its proprietary UNIGLOVES® brand.
Mr. Lee adds,
partnerships with reliable manufacturers, we seek to uphold quality and strengthen our market presence while addressing the diverse needs of our customers in areas of infection control, hygiene and care, dental care, and wound care across our key markets.
Despite ongoing trade tensions and intense competition, the Group recorded a 25.1% year-on-year increase in revenue from S$115.2 million in FY24 to S$144.1 million in FY25. The increase was attributable to higher sales volume across all product segments with the expanded downstream distribution network.
REVENUE ANALYSIS BY PRODUCT SEGMENTSFYE 30 Jun (S$ mil) | ||||||||
FY25 | FY24 | Variance | FY25 | FY24 | Variance | FY25 | FY24 | |
Latex examination gloves | 61.27 | 59.29 | 3.4% | 15.73 | 14.39 | 9.3% | 25.7% | 24.3% |
Nitrile examination gloves | 66.32 | 43.90 | 51.1% | 15.69 | 9.58 | 63.9% | 23.7% | 21.8% |
Other ancillary products | 16.48 | 12.02 | 37.1% | 3.32 | 1.90 | 74.8% | 20.2% | 15.8% |
Group total | 144.07 | 115.21 | 25.1% | 34.74 | 25.87 | 34.3% | 24.1% | 22.5% |
In FY25, nitrile disposable examination gloves and ancillary products, such as reusable gloves, masks and bandages, recorded a commendable increase in revenue, while latex disposable examination gloves recorded modest growth.
The strategic expansion in Germany and Spain during the fourth quarter of FY24, along with the USA
enhanced its market presence in developed countries. All key markets, particularly in Europe and North America, experienced commendable revenue growth, with the exception of South America.
REVENUE ANALYSIS BY KEY MARKETSmil) | 1H FY25 | 2H FY25 | FY25 | FY24 | Variance | ||
Europe | 45.33 | 42.72 | 88.05 | 63.43 | 38.8% | ||
North America | 4.29 | 6.75 | 11.04 | 5.04 | >100.0% | ||
South America | 6.14 | 5.82 | 11.96 | 19.81 | (39.6)% | ||
Africa | 4.17 | 4.05 | 8.22 | 6.81 | 20.7% | ||
Asia | 11.68 | 10.69 | 22.37 | 18.50 | 21.0% | ||
Others | 1.05 | 1.38 | 2.43 | 1.62 | 50.7% | ||
Group total | 72.66 | 71.41 | 144.07 | 115.21 | 25.1% |
Note: As a result of the integrated supply chain, the Group recognises sales only after the products have been sold by the distribution companies. The goods in transit and in the warehouses of its distribution companies are recorded as inventory, and can only be recognised as revenue when they are sold to end consumers.
Other income decreased by 45.8% year-on-year from S$2.4 million in FY24 to S$1.3 million in FY25 due to lower interest income from the fixed deposits with the banks, which coincided with the decrease in the interest rate environment.
Other expenses decreased by 51.4% year-on-year from S$3.5 million in FY24 to S$1.7 million in FY25 due to the reduction in foreign exchange losses, which was partially offset by the impairment of machinery at the upstream manufacturing division and the increase in amortisation of intangible assets arising from the acquisition of Unigloves Germany in FY24.
Operating expenses, which include marketing and distribution expenses as well as administrative costs, rose by 9.4% year-on-year, increasing from S$32.5 million in FY24 to S$35.6 million in FY25. This increase was primarily attributable to higher marketing expenditures and a rise in staff costs, resulting from the strategic expansion of the downstream distribution network.
Finance costs increased by 70.5% year-on-year from S$1.3 million in FY24 to S$2.2 million in FY25. The increase was attributed to a rise in trade facilities and the interest expense on the loan secured for acquiring the equity interest in Unigloves Germany.
Share of profits from the joint venture was S$47,000 in FY25 following the acquisition of UG Nitrex S.
L. in June 2024. Share of losses from associates reported by the USA associates increased slightly from S$77,000 in FY24 to S$84,000 in 1H FY25.
The Group narrowed its net loss attributable to shareholders by 37.4% year-on-year, down from S$6.1 million in FY24 to S$3.8 million in FY25 after accounting for tax expenses and minority interests.
FINANCIAL POSITION ANALYSISFYE 30 June (S$ mil) | As at 30 June 2025 | As at 30 June 2024 | Variance (%) | ||
Equity attributable to the owners of | 158.73 | 163.39 | (2.9) | ||
Cash and bank balances | 23.29 | 28.00 | (16.8) | ||
Long-term bank borrowings | 22.50 | 24.93 | (9.7) | ||
Short-term bank borrowings | 24.26 | 17.91 | 35.5 | ||
Net asset value per share | S$0.2545 | S$0.2619 | (2.8) |
Note: Net asset value per share was computed based on the share capital of approximately 623.8 million shares as at 30 June 2025 and 30 June 2024.
The
The Company will update shareholders on material developments of the Group, as and when they arise.
##
the SGX website on 28 August 2025.