November 16, 2023
Medical Disposables and Supplies Limited (MDS) for the six months ended September 30, 2023, reported a 2% decrease in revenue totalling $1.79 billion compared to $1.82 billion in the corresponding period last year. Revenue for the second quarter experienced a 7% decline to close at $866.95 million compared to $930.24 million for the comparable quarter of 2022.
Cost of sales amounted to $1.338 billion (2022: $1.342 billion), a marginal decrease year over year. Consequently, gross profit slipped 5% to $454.49 million compared to $480.37 million for the six months ended September 30, 2022. MDS booked gross profit of $219.82 million for the second quarter versus $250.93 million reported for the similar quarter of 2022.
Total operating expenses for the six months ended September 30, 2023, amounted to $425.65 million, a 9% increase relative to $391.42 million reported in 2022. This was primarily due to administrative expenses, which increased by 17%, closing at $251.62 million (2022: $215.74 million). Notably, selling and promotional costs fell 3% from $157.95 million in 2022 to $153.20 million for the period under review.
Operating profit for the six months ended September 30, 2023, amounted to $34.30 million, a 64% decline relative to $94.01 million reported in 2022. MDS reported operating profit for the second quarter of $8.87 million (2022: $49.21 million).
Year to date, finance income decreased by 95% to close at $96,957 (2022: $2.06 million), while finance costs climbed by 34% to totalled $70.59 million (2022: $52.62 million).
Loss before tax for the six months ended September 30, 2023, amounted to $39.96 million relative to a profit of $43.83 million reported in 2022. Loss before tax for the second quarter amounted to $38.28 million in contrast to a profit of $23.99 million documented in 2022. The Company recorded a tax credit for the six months which amounted to $181,742 compared to a tax charge of $7.98 million for 2022. Consequently, net loss for the six months period amounted to $39.77 million relative to a profit of $35.85 million reported in 2022. For the second quarter, MDS recorded a net loss of $38.28 million versus a profit of $19.30 million recorded twelve months earlier.
Loss per share (LPS) for the six months amounted to $0.15 (2022: EPS of $0.14), while LPS for the quarter totalled $0.15 (2022: EPS of $0.07). The twelve-month trailing EPS was $0.01, and the number of shares used in these calculations was 263,157,895.
Notably, MDS’s stock price closed the trading period on November 15, 2023 at a price of $3.37.
Balance Sheet Highlights:
The Company’s assets totalled $2.98 billion; a 2% increase from $2.91 billion booked in 2022.
Shareholder’s equity was $1.02 billion (2022: $1.04 billion), representing a book value per share of $3.89 (2022: $3.96).
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