Maximising upsides in core business

Durrant Pate/Contributor

Medical Disposables and Supplies (MDS) is well into its two-year strategic plan to successfully transition the entity and proactively create a seamless ‘post-merger integration’ with Cornwall Medical and Dental Supplies Limited (CMDSL), in which it acquired majority shares more than a year ago.

CMDSL is a distribution company headquartered in Montego Bay, St James, with which MDS has enjoyed a friendly rivalry over the years. The merger has proven to be synergistic, especially in MDS’ Medical Division, which is regarded as a key strength and an area of competitive advantage.

The post-merger integration is a major project in which MDS has to continue to keep to its core competencies in focus with the full knowledge that there are many upsides in its core business that must be maximised.

MDS will now become a key distributor of dental products and operating the retail segments, arising from the merger with CMDSL through its three pharmacies under the Corn-Med Pharmacy brand with two located in Montego Bay and one in Savanna-la-Mar now.

LONG-TERM FOCUSED

MDS has now added a niche in dental supplies and wants to expands its market share in this area, augmenting its existing offering with this new complementary area of business will be the company having the ability to service new clients and becoming more vertically integrated as a result of the pharmacy retail section, which the management says is nothing short of exciting.

MDS is setting its sights on further growth through a combination of organic and inorganic means while adapting and adjusting to shifts in the internal and external environment. The management reports that “MDS may be regarded as a defensive stock on the Jamaica Stock Exchange’s Junior Market, as the company operates in a space where it provides necessities which generally have an inelastic demand”.

The strategy is to continue providing stability by capitalising on opportunities to offer products and services with a constant demand during periods of surplus and periods of crises.

TOTAL REVENUE OF $3.42 BILLION

The management views the company as one suited for the long-term investor interested in growth-oriented fundamentals.

For the year ended March 31, MDS generated total revenue of $3.42 billion, an increase of 41 per cent or $993.50 million when compared to the total revenue produced last year. The increase in sales can be attributed to an increase in overall business activity coupled with the consolidation of the operations of the recently acquired subsidiary, Cornwall Enterprises Limited, holding company for CMDSL.

MDS continues to rebound from the challenges experienced during the prior year to post profit after tax of $105.43 million. This is up from a profit after tax of $69.61 million in 2021. Total Group assets grew by $388.32 million or 17 per cent from $2.29 million to $2.68 million when compared to 2021.