Medical Disposables & Supplies Limited

For the six months ended September 2017:

Revenue amounted to $964.89 million, an increase of 17%, when compared with the $826.44 million booked last year. According to the company, “This positive performance was driven by 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.”  Revenue for the quarter totaled $484.30 million up 21% year over year (2016: $401.08 million).

Cost of sales rose by 20% to total $756.41 million relative to the $629.13 million reported for the same period last year. Consequently, gross profit increased 6% or $11.17 million to a total of $208.47 million in 2017 relative to the $197.30 million for the corresponding period in 2016. MDS highlighted that “this improvement in the gross profit was driven by increased sales as a result of new business line.”

Total operating cost closed the period at $162.85 million, up 18% (2016: $138.12 million).  Of this selling and promotional costs increased 31% to $66.41 million (2016: $50.86 million) Administrative expenses increased by 14% to $86.70 million from $76.28 million last year. “The Company has increased its investment in human capital to improve on its existing infrastructure to sustain the current growth, development and continued expansion of the business.”

Gain on foreign exchange was reported at $2.72 million compared a loss of $4 million in 2016. Finance Cost decreased by $920,000 to total $16.73 million. (2016: $17.65 million) .

As a result, MDS reported profit before tax of $31.63 million, a 16% decrease relative to the $37.62 million reported in 2016.

Consequently, net profit for the period amounted to $31.57 million relative to $37.56 million in 2016, a 16% decline year over year, after a tax charge of $60,000 for the 2017 period.  Net profit for the quarter amounted to $15.91 million (2016: $19.76 million).

Earnings per share for the period amounted $0.12 (2016: $0.14). EPS for the quarter amounted to $0.06 relative to $0.075 in 2016. The trailing twelve-month EPS amounted to $0.359. The number of shares used in the calculations is 263,157,895.

Balance Sheet at a glance:

As at December 2016, total assets amounted to $1.42 billion 28% more than $1.11 billion the year prior. MDS highlighted that “this was mainly due to increased inventories and receivables balances generated from the introduction of new business lines which resulted in the overall increase in sales revenue.”

Shareholders’ Equity totaled $595.11 million (2016: $501.1 million) resulting in a book value per share of $2.26 (2016: $1.90).