Medical Disposables tops $3 billion in revenues | Loop Jamaica

The content originally appeared on: Jamaica News | Loop News

Medical Disposables and Supplies’ (MDS) year-end revenues has surpassed the $3 billion mark for the first time.

Medical Disposables CEO Kurt Boothe said the company achieved growth across all segments.

“We achieved growth in every division as a result of different strategies employed. These included expansion of distribution channels, inclusion of the new subsidiary and more emphasis on niche areas in the pharmaceutical space,” Boothe said.

Revenues for the year ending March 31, 2022, topped $3.4 billion in all, comprising $2.363 billion for pharmaceuticals, $464.9 million for medical and $587.6 million for consumables.

Overall, the company reported a net profit after tax of $105.4 million for the year ending March 2022, representing an increase of 51.5 per cent or $35.8 million, compared to the previous year.

Profit before tax moved from $75.9 million to $146.4 million, an increase of 92.9 per cent or $70.5 million.

Despite the improved performance, MDS reported that net profit was reduced by a debit-to-tax expense of $20.69 million. This is a non-cash line item that was applied to revalued assets.

“The figure was calculated to offset the disparity in capital allowances resulting from the appreciation in revalued fixed assets. This figure was applied to deferred tax liability,” MDS said.

According to the audited financials, gross profit increased by 54.3 per cent or $325.3 million and now stands at $924.2 million, while operating profit increased by 134.8 per cent or $127.3 million to $221.7 million.

MDS’ balance sheets show that inventories increased by 33.1 per cent or $282.4 million to total $1.1 billion, while total assets increased $388 million or 17 per cent to $2.7 billion.

Additionally, total liabilities increased by $301 million or 23.7 per cent to $1.57 billion; deferred tax liability is up by $20.69 million or 93 per cent to $242.4 million, and borrowings increased by 86 million to 243.4 million.

In relation to increased borrowings, MDS explained that this was “mainly attributable to working capital contributing to the increased sales turnover”.

MDS noted that the relaxed COVID measures have enabled commerce to return to normal. This is reflected in the in demand for goods.

“We are optimistic that the policy of shutdown and curfew will not be revisited, and such, will not curtail demand for the group’s goods and services,” it said.

However, it warned that “this is easily compromised if any large-scale wave of infection is not well managed”.

In the meantime, MDS said it continues to monitor the situation and will remain flexible to adjust as is necessary.

MDS Limited is an islandwide distributor of healthcare and consumer products, with a catalogue that spans pharmaceuticals, vaccines, injectables, hospital supplies, medical-disposable items, medical sundries, consumer products and beauty items.