MEDICAL Disposables and Supplies (MDS) saw its bottom line grow by 55 per cent over year-earlier levels during the three months to June 30.

The company earned $17 million during the period when it made $257 million in sales, which was 26 per cent higher than the comparative period in 2013.

“Coming out of the initial public offering (IPO), we were able to put supporting structures in place that increased our market penetration and profits,” said Kurt Boothe, general manager of MDS.

The company raised $115 million through its IPO last December, when it sold 24 per cent of the company.

Improved revenue “was due to the product sales mix, increases in sales of products with higher margins and consistent review of our pricing structure to maintain gross margin efficiency”, according to the company.

“We have placed strategic focus on the growth of our healthcare services, which has resulted in an increase in the sales of some of our current product offerings as well as some of the newer ones,” said Boothe. “These recent acquisitions, in addition to our existing lines of pharmaceutical, medical disposable and general consumption products bring us to well over 1,500 SKUs (stock-keeping units).”

In January of this year, MDS, which already co-distributed pharmaceuticals for GlaxoSmithKline Caribbean and Dr Reddy’s, acquired the distribution of the entire line of Denk Pharma products throughout the island.

The IPO funds raised also allowed the company to pay down interest bearing debt, and invest in competitively priced interest bearing facilities, which earned MDS $1.2 million.

These funds, Boothe argued, will be used for the future expansion of the business.

MDS’ operational expenses increased by 50 per cent, up by $15 million over the corresponding period last year to $46 million for the three months to June 30.

Boothe said the sharp increase reflected “greater investments in high-end infrastructure and an increased staff complement in strategic areas”.

Staff-related expenses, in particular, were driven by the decision to realign the staff complement and compensation to sustain the current growth, development and expansion of the business, he explained.