June 1, 2022

Medical Disposables & Supplies LTD (MDS), for the year ended March 31, 2022, reported $3.42 billion for revenue, a 41% increase relative to the $2.42 billion booked the previous year. For the quarter, revenues totalled $922.61 million, up 41% year over year (2021: $656.49 million).

Cost of sales went up 36% to close the period at $2.48 billion relative to the $1.82 billion reported for the same period last year. This resulted in gross profit of $936.46 million, a 56% increase compared to $598.89 million reported last year. Gross profit for the quarter amounted to $291.94 million (2021: $166.35 million).

Total operating costs closed the period at $723.93 million, up 42% (2021: $509.66 million). Of this:

Administrative expenses amounted to $395.86 million (2021: $254.83 million).

Selling and promotional costs totalled $274.28 million (2021: $225.34 million).

Depreciation cost closed the period at $39.39 million (2021: $28.49 million).

Impairment of financial assets totalled $14.39 million (2021: $1 million).

Total operating cost for the fourth quarter closed at $238.47 million (2021: $157.23 million), reflecting a 52% increase when compared to 2021 fourth quarter.

The Company’s loss on foreign exchange was reported at $17.97 million compared to $11.04 million in 2021. Finance costs and finance income increased to total $71.66 million (2021: $70.09 million) and $11.10 million (2021: $484,818), respectively. Gain on disposal of property, plant, and equipment for the period amounted to $3.18 million (2021: $50,000).

As a result, MDS reported profit before tax of $146.46 million, a 93% increase relative to the $75.94 million in 2021. For the quarter, profit before tax closed at $54.47 million (2021: $61.89 million).

Consequently, net profit for the period amounted to $105.43 million relative to $69.61 million in 2021, a 51% increase after incurring a tax charge of $41.03 million (2021: $6.32 million) for the period. Net profit for the quarter amounted to $29.53 million (2021: $57.32 million).  For the year ended March 31, 2022, profit attributable to shareholders amounted to $96.97 million (2021: $69.61 million).

Earnings per share for the period amounted to $0.40 (2021: $0.26). EPS for the quarter closed at $0.11 relative to $0.22 in 2021. The number of shares used in the calculations is 263,157,895. MDS last traded on May 31, 2022 at $8.19 with a corresponding P/E ratio of 20.44 times.

Management noted, “The negative impact of Covid-19 has softened as the Government has moved away from lockdowns and curfews and is urging persons to take personal responsibility for their health and wellness in the continuing effort to minimize the effects of COVID-19. This has allowed commerce to return to normal as seen with an increase in demand for goods. We are optimistic that the policy of shutdown and curfew will not be revisited and as such should not curtail demands for the Group’s goods and services.”

Balance Sheet Highlights:

As at March 2022, ‘Total Assets’ amounted to $2.68 billion, relative to $2.29 billion reported in the prior year. This increase was primarily due to an upward movement in, ‘Inventories’ by 33% to $1.14 billion (2021: $853.80 million). Also, ‘Trade and other receivables’ contributed to the growth closing at $533.27 million (2021: $457.39 million).

Shareholders’ Equity totalled $973.30 million (2021: $894.76 million) resulting in a book value per share of $3.70 (2021: $3.40).

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