Medical Disposables & Supplies Limited (MDS) for the three months ended June 30, 2017: recorded revenues of $480.59 million, an increase of 13% compared to the $425.36 million booked in 2016. The increase was due to the, “Company’s strategic plan to increase its market share, through increased product offerings and the widening of the customer base in all categories of the Company’s business operations.” Cost of Sales increased $51.94 million to total $378.09 million relative to $326.15 million in 2016, a 16% increase. As a result, Gross Profit grew by 3% or $3.30 million to total $102.50 million in 2017 compared to $99.21 million in 2016. MDS noted, “this improvement resulted from increased sales arising from the introduction of new business lines.”
Total Operating Cost rose 16% to close at $81.03 million (2016: $69.87 million). MDS indicated the increase was due mainly to, “staff related expenses, depreciation and amortization, insurance, utilities, and security expenses. Staff related expenses, in particular, increased because of the strategic decision to realign the staff complement and compensation to sustain the current growth, development and expansion of the business.” Of total operating costs, Selling and Promotional costs rose by 29% to $33.01 million relative to $25.63 million in 2016. Administrative Expenses increased by 10% to close the period at $41.42 million (2016: $37.76 million). Other Operating Expenses rose by 7% to close the year at $689,248 (2016: $646,265), while Depreciation increased by 1% to close the quarter at $5.91 million (2016: $5.84 million).
Operating Profit closed at $22.56 million relative to $30.38 million in 2016 this represents a 26% decrease. The company reported Finance Income of $4,675 for the period, this compares with the $71,881 million booked for the corresponding period in 2016.
Finance Cost for the quarter amounted to $8.05 million relative to the $9 million reported in 2016.
MDS reported Foreign Exchange Gains of $1.18 million relative to a loss of $3.60 million in 2016.
Pre-tax profit totalled $15.70 million, down from the $17.85 million booked in 2016, a 12% decrease. After taxation of $30,000, Profit after Tax declined 12% amounting to $15.67 million compared to $17.82 million in 2016. The decline according to the company was attributed to the, “Pharmaceutical division which experienced out of stock situations from major drug houses and above average seasonal market activities.”
Earnings per share for the first quarter amounted $0.06 (2016: $0.07), the trailing earnings per share amounted to $0.38. The number of shares used in the calculation was 263,157,895.
Balance Sheet at a glance:
As at June 30, 2017, Total Assets rose by 17% amounting to $1.36 billion compared to $1.15 billion in 2016. The main contributor to the increase was inventories which rose 61% to $481.05 million (2016: $298.73 million).
Shareholders’ equity totalled $579.21 million (2016: $494.52 million) with book value per share of $2.20 (2016: $1.88).
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