Expanding through the acquisition of Cornwall Medical and Dental Supplies

Medical Disposables & Supplies Limited (MDS) has broken even one month ahead of expectation, achieving the feat in the first eight months of its 2021 fiscal year instead of the projected eight months.

“We expected to break even in nine months but we did it in eight,” said Group Chief Executive Officer Kurt Boothe.

“The company is still focused on its expansion drive as we won our first negotiation deal.”

MDS is currently celebrating its first acquisition of Cornwall Medical and Dental Supplies Limited.

“Shifting from our friendly rivals to business partners through an acquisition deal in which we hold a 60 per cent stake in our newly formed subsidiary, Cornwall Enterprises Limited,” Boothe advised shareholders.

He added that, “this succession blended well with our need for expansion. Cornwall’s two locations also benefit the company’s growth strategy to reach more customers and increase market share in the medical division.”

STRATEGIES BEING PUT IN PLACE FOR COVID-19

Boothe spoke about the strategies being put in place for COVID-19, explaining that “not because we are a health centre means we are immune to the impact of the pandemic, however, we used this downtime for preparation and an opportunity to focus on expansion”.

The MDS CEO remarked: “We have expanded our portfolio with the expectation of a great return in the next three years and extended our reach in other channels like the supermarket chains in addition to the traditional chains. We are also on the path of diversifying our products, these changes is in keeping with our aim to be a full-service distributor, not only confined to the health centre.”

Chief Financial Officer Raymond Ernandez highlighted the company’s financial performance over the last five years, noting that MDS’s revenue as at March 31, 2021, totalled $2.42 billion compared to $2.48 billion recorded for the same period of the prior financial year, representing a two per cent decrease year over year.

Net profit for the period amounted to $69.61 million, 101 per cent increase over the $34.56 million reported in the prior year.

Said Ernandez: “We sold less but made more. We used COVID as a year to rebalance the business technology and operation as a result of an increase in expenses.”

The company’s total assets increased by 31 per cent to $2.29 billion from $1.74 billion in the prior year, while Shareholders’ Equity as at March 31, 2021 amounted to $1.02 billion relative to $833.76 million in 2020, indicating a 22 per cent increase.

For the three months ended June 30, 2021, revenue totalled $682.58 million compared to the $510.08 million recorded for the same period of the prior financial year; this represents a 34 per cent increase year over year. Net profit ended the quarter at $25.48 million relative to a loss of $7.07 million reported a year prior.