Medical Disposable’s Managing Director, Mr. Kurt Boothe began his address by highlighting that “despite the challenging operating environment” the company, through its solution oriented program has completed another year with successful and positive results. Mr. Boothe noted that, “the company had undertaken many changes over the last and current business cycles.” MDS hit a symbolic land mark in the 2017 financial year according to Mr Boothe. Net profit for 2017 amounted $100.1 million up 5 %, while revenue was up 29% to $1.7 billion. Mr Boothe added that the, “financial result is representative of the investment period the company is currently undertaking.” As a part of the investment period the company has introduced new brand of consumer products which have lower margins; the company intends to counter that by increasing volume. In the invest cycle MDS not only undertook physical expansion but also had an internal restructuring. This led to an increase in staff and selling and distribution expense. Mr Boothe highlighted that of operating expenses which amounted to $287 million, a considerable portion was not cash expense, rather is was depreciation and finance cost, which amounted to $56 million.
Moving on to his outlook for the company Mr Boothe expressed optimism on the future prospects for the company. He noted that, the company during the current financial year has launched a new division; the general consumer division. The achievement was “anchored by the signing of an agreement that which bright GlaxoSmithKline consumer segment to MDS.” Among the prominent brands that the GlaxoSmithKline agreement brought to MDS was ‘Panadol’, ‘Aquafresh’ and ‘Andrews’. Mr Boothe indicated that, GSK products are particularly attractive because, “these products are household names and there is less effort needed for market penetration.” Additionally, MDS is the largest and only total distributor of GlaxoSmithKline in Jamaica according to the Managing Director. The agreement with GSK will allow the company to diversity its product offering by adding wholesale and over-the-counter segments as per Mr Boothe. In addition, The Managing Director mentioned that plans are in process to expand the medical division.
In terms of the company strategic goals Mr Boothe noted that MDS intends to, “better manage the tremendous amount of growth the company has enjoyed;” as the rate of growth has outpaced the company infrastructure. This is part of the company’s goal to think inside the box; refining the internal processes and structure while keeping an eye outside the box. Mr Boothe summarises his vision with the acronym SIMPLE; Structure, I.T., Measurable, Procedure, Lowering Cost and Execution.
Mr Boothe closed by reiterating his optimistic outlook for the company and thanked employees shareholders and all other stakeholders.