August 03, 2018
Medical Disposables & Supplies Limited (MDS) for the three months ended June 30, 2018, reported revenue of $541.11 million, an increase of 13% compared to the $480.59 million booked in 2017. This according to Management, “reflected continued growth in sales. This performance was mainly attributable to growth in the consumer business segment and prices increases.”
Cost of Sales increased $46.25 million to total $424.33 million relative to $378.09 million in 2017, a 12% increase. As a result, Gross Profit grew by 14% or $14.28 million to total $116.78 million in 2018 compared to $102.50 million in 2017.
Total Operating Cost rose 7% to close at $86.71 million (2017: $81.03 million). Of this total, Selling and Promotional costs slid 2% to $32.25 million relative to $33.02 million in 2017. Administrative Expenses went up by 17% to close the three month period at $48.64 million (2017: $41.42 million). MDS recorded Other Operating Expenses of $689,248 for the first quarter of 2017 relative to an income of $284,831 for the comparable period of 2018. Depreciation increased by 4% to close the quarter at $6.11 million (2017: $5.91 million). Management noted the increase in expenses were mainly due to a growth in business activities and staff complement in the warehouse and sales department and infrastructural improvements. MDS also indicated, “General insurance increased by $0.8M or 47% consistent with the increased levels of inventories and other assets.”
As a result, Operating Profit closed the first quarter at $31.43 million relative to $22.55 million in 2017, this represents a 39% increase. MDS reported Loss on Foreign Exchange of $4.20 million versus a gain of $1.18 million twelve months earlier. This according to MDS was due mainly to, “the devaluation of the Jamaican Dollar in relation to the United States currency.”
Finance Cost for the three months amounted to $8.04 million relative to the $8.05 million reported in 2017, a marginal decline year over year.
Pre-tax profit totalled $19.21 million, up from the $15.69 million booked for the corresponding quarter of 2017, a 22% increase. Profit for the quarter amounted to $19.21 million relative to $15.66 million booked for the first three months of 2017 after taxation of $30,000 relative to nil for the first quarter of 2018.
Earnings per Share for the first quarter amounted $0.07 (2017: $0.06). The trailing earnings per share amounted to $0.43. The number of shares used in the calculation was 263,157,895. MDS stock price closed the trading period on August 03, 2018 at $5.80.
Balance Sheet at a glance:
As at June 30, 2018, Total Assets rose by 1% amounting to $1.37 billion (2017: $1.36 billion). This was due to an increases in the company’s ‘Prepayments’, ‘Trade and other receivables’ and ‘Property, Plant & Equipment’ which ended the period at $72.39 million (2017: $63.10 million), $317.65 million (2017: $294.02 million) and $523.72 million (2017: $494.08 million) respectively.
Shareholders’ equity totalled $692.34 million (2017: $579.21 million) with book value per share of $2.63 (2017: $2.20).
Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation (s) or view (s) expressed by that research analyst in this research report.
Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.