MDS reports 9% increase in year’s net profits

Date: May 30, 2018

Medical Disposables & Supplies Limited (MDS), for the Year ending March 31, 2018 reported Revenue of $2.04 billion, an increase of 19% compared to the $1.71 billion booked in 2017. Cost of Sales increased $280.63 million to total $1.58 billion relative to $1.30 billion in 2017, a 22% increase. As a result, Gross Profit grew by 12% or $50.79 million to total $461.52 million in 2018 compared to $410.73 million in 2017. Revenue for the fourth quarter amounted to $559.46 million up 23% (2017: $455.65 million).

Total Operating Cost rose 16% to close at $324.10 million (2017: $279.42 million). Of this total, Selling and Promotional costs rose by 25% to $127.85 million relative to $102.58 million in 2017. Administrative Expenses went up by 12% to close the year at $171.09 million (2017: $152.22 million). Other Operating Expenses decreased by15% to close the year at $2.12 million (2017: $2.48 million), while depreciation increased by 4% to close the year at $23.05 million (2017: $22.13 million). For the fourth quarter Total Operating Cost amounted $76.47 million (2016: $68.31 million).

Operating Profit closed at $141.80 million relative to $135.58 million in 2017 this represents a 5% increase. The company reported Finance Income of $23,204 for the period, this compares with the $95,404 booked for 2017.

Finance Cost for the year amounted to $35.31 million relative to the $34.30 million reported in 2017.

Foreign Exchange Gains of $2.65 million were reported for the year relative to a loss of $743,304 in 2017.

Pre-tax profit totalled $109.65 million, up from the $100.63 million booked the year prior, a 9% increase. After taxation of $60,000, Profit after Tax rose 9% amounting to $109.59 million compared to $100.57 million in 2017. For the fourth quarter Net Profits totalled $46.13 million (2017: $33.77 million).

Earnings per Share for the year amounted $0.42 (2016: $0.38), while EPS for the quarter totalled $0.18 relative to $0.13 last year. The number of shares used in the calculation was 263,157,895. MDS stock price last traded on May 30, 2018 at $4.50.

Balance Sheet at a glance:

As at March 31, 2018, Total Assets rose by 21% amounting to $1.47 billion (2017: $1.21 billion). This was due to an increase in the company’s ‘Inventories’ and ‘Trade and other receivables’ which ended the period at $543.78 million (2017:$369.38 million) and $382.57 million (2017: $324.62 million).

Shareholders’ equity totalled $673.13 million (2017: $563.54 million) with book value per share of $2.56 (2017: $2.14).


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