Medical Disposables sees 42% earnings growth in Q4
Medical Disposables and Supplies reported a 42 per cent increase in profit during its last quarter, which ended March 31.
For the three-month period, the company posted $20.7 million in profit, up from the $14.6 million it made during the comparative period last year.
Revenue for the period under review was $248 million, a 13 per cent jump from the $218 million it made in the corresponding period.
The performance was partly due to an increase in product offerings as well as a greater market penetration.
Additionally, at the beginning of the fourth quarter, MDS introduced a new product line, Denk Pharma from Germany, as part of its expansion strategy. Denk appointed MDS as a co-distributor for its entire product range islandwide.
Administrative expense jumped by 49 per cent, moving from $20.2 million during the comparative quarter last year to $30 million during the period under review, due mainly to an increase in staff and new storage facilities.
The publicly listed company more than quadrupled the amount it spent on other operating expenses -- it incurred $4.5 million for operating expenses during the period under review, up from $63,000 in the corresponding period last year.
Selling and promotional costs was $8.7 million during the period under review, a marginal increase over the $8.6 million it spent the year before.
"Recruitments were made in the areas of operations and marketing in an effort to increase market penetration and to support the wider the product range," the company said.
The company, which distributes pharmaceutical products and disposable medical supplies, raised $115 million through the offer of 63.2 million shares, or a 24 per cent stake in the company at $1.83 a share late last year.
Funds raised were to pay off bank debt, directors' loans and balances in order to further strengthen the capital base of the company for future expansion of existing product ranges, growth into new product ranges, and underserved niche markets.
MDS is a leading distributor in the essential services market with its product portfolio centering around three key business areas: pharmaceuticals, medical supplies and general consumer items.