Medical Disposables and Supplies Limited recorded profit of $19.1 million for its first quarter ended June 30, reflecting year-on-year growth of 22.7 per cent or $3.5 million.

The growth in profit was led by improvements in sales, which climbed 12.6 per cent or $60.5 million over the corresponding quarter in 2017 to total $541.11 million, the company said in its quarterly report posted on the Jamaica Stock Exchange website.

The healt-care and consumer products distributor attributed the growth in sales to increased product offerings, price increases and growth in its new consumer business segment.

Medical Disposables made history for its 2017/2018 financial year, reaching $2.05 billion in revenues. In June, general manager of the company Kurt Boothe announced the company’s appointment as distributor for United States-based technology company 3M, which would allow for the expansion of its portfolio in disposable supplies and medical instruments. Additionally, the agreement would enable Medical Disposables to replicate its commitment to growth in company numbers going forward.

Despite the improved bottom line, Medical Disposables burnt an additional $5.40 million or 6.7 per cent on costs associated with the increase in business activities, bringing operating expenses up to $85.35 million.

Salaries and commission had the lion’s share of the company’s increased expenses, moving up $3.35 million or 8.2 per cent. Medical Disposables said the growth in expenses resulted from increases in staff complement in the warehouse and sales departments, while general insurance increased by $0.8 million or 47 per cent consistent with the increased levels of inventories and other assets professional fees.

Information technology consultancy fees also increased by $1.74 million or 36.2 per cent for infrastructural improvements. Medical Disposables also suffered losses amounting to $5.36 million on the US currency.

“This resulted in loss on foreign exchange which increased by $5.38 million or 455 per cent to $4.19 million when compared to the quarter ended June 30, 2017,” Boothe told shareholders.

Total assets of the company declined by 7.2 per cent or $106.06 million, moving from $1.474 billion to $1.368 billion. Shareholders’ equity increased by $19.21 million or 2.8 per cent to $692.34 million as a result of the profit |earned for the quarter while cash and cash equivalents improved to $27.5 million.