February 15, 2024
Medical Disposables and Supplies Limited (MDS) for the nine months ended December 31, 2023, reported a 3% decrease in revenue totalling $2.69 billion compared to $2.76 billion in the corresponding period last year. Revenue for the third quarter had a 4% decrease to close at $900.47 million compared to $940.54 million for the comparable quarter of 2022.
Cost of sales amounted to $2.03 billion (2022: $2.01 billion), this represents an increase of 1% year over year. Consequently, gross profit decreased by 11% to $666.83 million compared to $753.23 million for the nine months ended December 31, 2022. The company booked gross profit of $212.34 million for the third quarter versus $272.86 million reported for the similar quarter of 2022.
Total operating costs for the nine months ended December 31, 2023, amounted to $628.79 million, a 7% increase relative to $585.05 million reported in 2022. This was primarily due to administrative expenses, which increased by 7% to close at $353.68 million (2022: $330.05 million), followed by selling and promotional costs, which increased by 7% from $235.55 million in 2022 to $252.03 million in the period under review.
Operating profit for the nine months ended December 31, 2023, amounted to $38.04 million, a 77% decrease relative to $168.18 million reported in 2022. Operating loss for the third quarter amounted to $767,768 relative to an operating profit of $74.17 million booked in 2022.
Finance income totalled $101,312, a 96% decrease from the corresponding period last year (2022: $2.25 million), while finance costs totalled $125.12 million, a 49% increase from the corresponding period last year (2022: $84.14 million).
Loss before tax for the nine months ended December 31, 2023, amounted to $88.73 million relative to a profit before tax of $82.18 million reported in 2022. Loss before tax for the third quarter amounted to $50.16 million (2022: profit of $38.35 million).
Taxation credit for the nine months ended December 31, 2023, amounted to $181,742 (2022: charge of $14.38 million).
Loss for the nine months amounted to $88.55 million relative to a profit of $67.81 million reported in 2022. For the third quarter, loss amounted to $50.16 million (2022: profit of $31.96 million). Loss attributable to shareholders for the nine months amounted to $85.68 million relative to a profit attributable to shareholders of $57.96 million in 2022. For the third quarter, loss attributable to shareholders was $48.47 million (2022: profit of $28.12 million).
Loss per share (LPS) for the nine months amounted to $0.33 (2022: EPS of $0.22), while LPS for the quarter totalled $0.18 (2022: EPS of $0.11). The twelve-month trailing LPS was $0.27, and the number of shares used in these calculations was 263,157,895.
Notably, MDS’s stock price closed the trading period on February 13, 2024, at a price of $2.53.
Balance Sheet Highlights:
The company’s assets totalled $2.97 billion; a 2% increase from $2.91 billion booked in 2022. This was largely due to a 19% increase in trade and other receivables, tempered by a 6% decline in inventories.
Shareholder’s equity was $975.54 million (2022: $1.04 billion), representing a book value per share of $3.71 (2022: $3.96).
Disclaimer:
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