November 9, 2020
Medical Disposables & Supplies Limited (MDS)
Unaudited Financial Statements for Six Months ended September 30, 2020:
Medical Disposables & Supplies Limited, for the six months ended September 2020 reported Revenue amounting $1.14 billion, an increase of 2%, relative to $1.12 billion booked the previous year. For the second quarter revenues totalled $630.16 million up 12% year over year (2019: $565.04 million). MDS noted, “The growth in sales is being driven by increases in the performance of the Pharmaceutical and Medical Divisions. This may be attributed to the partial reopening of the economy as well as the relaxation of some of the measures being employed to curtail the spread of Covid-19.”
Cost of sales went up 3% to close the period at $876.81 million relative to the $847.99 million reported for the same period last year. This resulted in gross profit which decreased 4% to a total of $263.42 million relative to the $274.29 million for the corresponding period in 2019. Gross profit for the second quarter amounted to $150.59 million, a 13% improvement compared to the $133.11 million reported in 2019.
Total operating expenses closed the period at $234.60 million, up 12% (2019: $210.31 million). Of this, selling and promotional costs went up 18% to $102.60 million (2019: $86.95 million). Administrative expenses increased by 8% to $118.01 million from $109.38 million last year. Depreciation for the first six month amounted to $13.99 million, 3% less than the $14.38 million reported in 2019. Total operational expenses increased by $12.10 million from $106.27 million recorded in the second quarter of 2019 to $118.37 million in the second quarter of 2020, representing an increase of 11%. The company highlighted that, “the movement was due to the costs associated with boosting the sales effort, particularly in the Consumer Division.”
Notably, the company booked other income of $2.59 million for the period ended September 30, 2020 relative to an income of $2.87 million recorded in the same period in 2019.
The company’s loss on foreign exchange was reported at $76,823 compared a loss of $19.91 million in 2019. Finance cost increased by 107% to total $44.91 million (2019: $21.74 million). Moreover, Gain on disposal of property, plant and equipment was $50,000 (2019: $1.15 million).
As a result, MDS reported loss before tax of $13.11 million relative to profit before tax of $26.37 million documented in 2019.
No taxes were incurred, consequently net loss for the period amounted to $13.11 million relative to net profit of $22.64 million in 2019. Net loss for the quarter amounted to $6.04 million (2019: Net Profit of $6.74 million).
Loss per share (LPS) for the period amounted $0.050 (2019: EPS of $0.086). LPS for the quarter amounted to $0.023 relative to EPS of $0.026 in 2019. The trailing twelve-month EPS amounted to $0.004. The number of shares used in the calculations is 263,157,895. MDS last traded on November 6, 2020 at $4.25.
Also, MDS mentioned, “We continue to be affected by the containment strategies imposed to combat the spread of COVID-19. However, we continue to realign our business strategies to focus on deeper market penetration, while capitalizing on several opportunities to provide medical responses with regards to the pandemic.”
Balance Sheet Highlights:
As at September 2020, total assets amounted to $1.78 billion 11% more than $1.61 billion booked the year prior. This was primarily due to increases in ‘Property, Plant & Equipment’ and ‘Inventories’ which closed at $601.07 million (2019: $547.80 million) and $656.04 million (2019: $601.94 million), respectively.
Shareholders’ Equity totalled $820.65 million (2019: $752.90 million) resulting in a book value per share of $3.12 (2019: $2.86).
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