MDS reports 8% increase in nine months net profit

February 15, 2023

Medical Disposables & Supplies Limited, for the nine months ended December 31, 2022 reported revenue amounting $2.76 billion, an increase of 11%, relative to $2.49 billion booked the previous year. For the third quarter revenues totaled $940.54 million up 8% year over year (2021: $874.63 million). MDS noted, “This growth was driven by increased sales across all Divisions including the subsidiary, Cornwall Enterprises Limited.”

Total operating cost closed the period at $585.05 million, up 21% (2021: $485.46 million). Of this, selling and promotional costs went up 29% to $235.55 million (2021: $181.99 million).

As such, operating profit amounted to $168.18 million (2021: $159.07 million). For the quarter, operating profit closed at $74.17 million versus $58.64 million booked in the prior corresponding quarter.

The company’s finance cost was reported at $84.14 million compared a loss of $60.21 million in 2021. Loss on foreign exchange decreased by 67% to total $3.95 million (2021: $11.83 million).

As a result, MDS reported profit before tax of $82.18 million, a 11% decrease relative to the $91.99 million in 2021. For the quarter, profit before tax closed at $38.35 million (2021: $37.33 million).

Consequently, net profit for the period amounted to $82.18 million relative to $75.90 million in 2021, a 8% increase year over year. Net profit for the quarter amounted to $31.96 million (2021: $28.97 million).

Earnings per share for the period amounted $0.25 (2021: $0.22). EPS for the quarter amounted to $0.11 relative to $0.08 in 2021. The trailing twelve-month EPS amounted to $0.42. The number of shares used in the calculations is 263,157,895. MDS last traded on February 15, 2022 at $4.85 with a corresponding P/E ratio of 11.43 times.

MDS noted “The integration of the operations of the subsidiary, Cornwall Enterprises Limited continues to be a strategic priority. We have started to realize the expected additional benefits in sales and internal operations. On completion, it is expected that further synergies will be achieved. The key objective is the alignment of long-term business strategies to focus on deeper market penetration and strengthening valued relationships.”

Balance Sheet Highlights:

As at December 31, 2020, total assets amounted to $3.15 billion 12% more than $2.82 billion the year prior. This was primarily due to a 345% increase in ‘Right of use assets’ and a 79% increase in ‘Cash and cash equivalent’ which amounted to $5.04 million (2021: $1.13 million) and $128.38 million (2021: $71.64 million), respectively.

Shareholders’ Equity totalled $1.03 billion (2021: $952.24 million) resulting in a book value per share of $3.92 (2021: $3.62).



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