Medical Disposables and Supplies Limited (MDS) earlier this week announced its audited financial results for the year ended March 31, 2025, demonstrating resilience with total sales of $3.88 billion, representing growth of $174.79 million or 4.71% compared to the previous year.  

This performance was underscored by a robust recovery in the second half of the fiscal year, with higher sell-through across the pharmaceutical, medical, and consumer divisions demonstrating the company’s strengthened market position.

Product Mix Optimisation & Operational Excellence Drive Performance

Gross profit increased by $162.52 million year-over-year, marking a turnaround from the previous year, which had been impacted by inventory write-downs. Gross profit margin improved to 22.56% versus the 19.25% in the prior year.  This improvement demonstrates the company’s enhanced inventory management and operational efficiency initiatives.

The company’s disciplined approach to expense management yielded positive results, with core operating expenses increasing by only 1.5% before exceptional items.  This was achieved despite inflationary pressures and strategic investments in business development, including costs associated with Hurricane Beryl preparedness, new business acquisitions, and expanded sales and merchandising capabilities.

Non-operating expenses declined by $12.58 million or 12.71%, reflecting the Group’s continued success in reducing finance costs and mitigating foreign exchange risks through improved treasury management.

Strategic Provision Positions Company for Future Growth

The reported loss of $281 million for FY2025, an 11% improvement versus the prior year, was primarily driven by a one-time provision of $144 million related to slow-moving inventory ($18 million) and related-party balances ($126 million) in subsidiary Cornwall Enterprises. Without these provisions, the company would have reflected a 57% improvement in its bottom line. Management emphasises that addressing these legacy issues decisively positions the company for improved performance going forward.

“Our fiscal 2025 results reflect the fundamental strength of our core operations and the effectiveness of our strategic initiatives,” said Kurt Boothe, chief executive officer. “While we faced exceptional circumstances requiring a significant provision, the underlying momentum in our business provides a solid foundation for accelerated growth in the coming fiscal year.  Our proactive approach to resolving subsidiary-related challenges demonstrates our commitment to financial transparency and operational excellence.”

Strong Financial Foundation Maintained

As of March 31, 2025, the Group maintained total assets of $2.67 billion. The company’s balance sheet remains robust, supported by improvement in cash flow generation from core operations.

The MDS management team continues to prioritise supply chain optimisation, market expansion, and strategic cost management initiatives that are already delivering measurable results across the organisation.

Momentum Building for FY2026

With the completion of necessary provisions and continued operational improvements, MDS is well-positioned to capitalise on market opportunities in the new fiscal year.  The company’s strategic initiatives in sales enhancement, operational efficiency, and expense management are expected to drive accelerated performance.

“The positive momentum we’ve built throughout FY2025 creates significant opportunity for the year ahead,” Boothe concluded. “Our team remains focused on executing our strategic plan while maintaining the financial discipline that will ensure sustainable long-term growth for our shareholders.”