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Profit went up by over 100% to $69.61 million

Last year, 2020, was a big one for Medical Disposables & Supplies (MDS), which more than doubled its profit.

For the 2020 financial year, which ended March 2021, MDS reported net profit of $69.61 million relative to $34.56 million in the previous year, representing a 101 per cent increase after incurring a tax charge of $6.32 million. Taxes for the same period last year was $920,775.

Net profit for the March 2021 quarter amounted to $57.32 million, which was a major leap from the $5.39 million recorded for the March 2020 quarter. Pretax profit for the year under review was equally good coming out at $75.94 million, recording a whopping 114 per cent increase relative to the $35.48 million booked in 2020.

For the March 2021 quarter, profit before tax closed at $61.89 million coming from $2.15 million in March 2020.

Small fall off in revenues

For the year ended March 31, 2021, MDS reported $2.42 billion for revenue, a two per cent decline relative to $2.48 billion booked the previous year. For the March 2021 quarter, revenues totalled $656.49 million, down 13 per cent year over year from the $755.50 million recorded for the same period in 2020.

The directors blamed the health and safety protocols imposed to fight the COVID-19 pandemic for the decline in revenues. The company directors report that, “in March 2020 the Government implemented curfews and shuttered businesses. This resulted in reduced business activity and demand for goods and services, particularly the demand for non-essentials products”.

However, ”fortunately for Medical Disposables and Supplies Limited, there was an increase in the demand for pharmaceuticals, especially medication for the treatment of lifestyle diseases such as hypertension and diabetes,” the directors explained.

Cost of sales went down five per cent to close the period at $1.82 billion relative to the $1.92 billion reported for the same period last year. This resulted in gross profit of $598.89 million, a seven per cent increase compared to $558.93 million reported last year.

Gross profit for the March 2021 quarter amounted to $166.35 million slightly up from the $160.04 million recorded in March 2020.

Marginal increase in operating costs

Total operating costs closed the period at $509.66 million, up nine per cent (2020: $465.83 million). Of this:

• Administrative expenses amounted to $254.83 million (2020: $244.24 million).
• Selling and promotional costs totalled $225.34 million (2020: $184.65 million).
• Depreciation cost closed the period at $28.49 million (2020: $29.34 million).
• Impairment of financial assets totalled $1 million (2020: $7.59 million).

Total operating cost for the fourth quarter closed at $145.88 million, reflecting a two per centdecrease when compared to 2020 fourth quarter. MDS recorded losses on foreign exchange of $11.04 million compared to $19.48 million in 2020.

Finance costs and finance income increased to total $70.09 million and $484,818, respectively. Gain on disposal of property, plant and equipment for the period amounted to $50,000 compared to $1.50 million in 2020. Gain arising on business acquisition amounted to $62.09 million compared to nil in 2020.

The management emphasised that, “the first quarter was particularly harsh on business, but the Group started to realise a turn-around by the end of the second quarter. By end of the financial year, sales across the Group had normalised and, in some cases, outpaced previous performance. With the continued inoculation of the population, there is more optimism for a return to normalcy in the medium term.