November 15, 2022
Medical Disposables & Supplies Limited, for the six months ended September 2022 reported Revenue amounting $1.82 billion, an increase of 13%, relative to $1.62 billion booked the previous year. For the second quarter revenues totalled $930.24 million down 1% year over year (2021: $936.48 million). MDS noted, “The marginal reduction in revenue signalled relative stability for the second quarter, proving resilience in a market that is rebounding from the effects of the Pandemic. Business activity has seen tremendous improvement which is reflective of the overall increase in sales in the Pharmaceutical and Consumer Divisions.”
Cost of sales went up 11% to close the period at $1.34 billion relative to the $1.21 billion reported for the same period last year. This resulted in gross profit which increased 17% to a total of $480.38 million relative to the $410.49 million for the corresponding period in 2021. Gross profit for the second quarter amounted to $250.93 million, a 7% improvement compared to the $234 million reported in 2021.
Total operating expenses closed the period at $386.37 million, up 25% (2021: $310.06 million). Of this, selling and promotional costs went up 35% to $157.95 million (2021: $117.38 million). Administrative expenses increased by 23% to $215.74 million from $174.95 million last year. Depreciation for the first six months amounted to $17.73 million, 13% less than the $20.35 million reported in 2021.
Total operational expenses increased by 10% from $186.45 million recorded in the second quarter of 2021 to $204.21 million in the second quarter of 2022. The company highlighted that the increase is, “due generally to increased selling and promotional activity to boost sales, which is reflected in the increased cost.”
Notably, the Company booked other income of $5.06 million for the period ended September 30, 2022 relative to an income of $4.75 million recorded in the same period in 2021.
The Company’s gain on foreign exchange was reported at $558,164 compared to a loss of $5.41 million in 2021. Finance cost increased by 16% to total $52.62 million (2021: $45.47 million). Moreover, Loss on disposal of property, plant and equipment was $171,000 in 2022 (2021: nil). Finance income amounted to $2.06 million (2021: $5.11 million).
As a result, MDS reported profit before tax of $43.83 million relative to $54.66 million documented in 2021.
Taxation charges amounted to $7.99 million (2021: $7.72 million), resulting in a net profit of $35.85 million for the six-month period relative to $46.93 million in 2021. Net profit for the quarter amounted to $19.30 million (2021: $21.45 million).
Earnings per share (EPS) for the period amounted $0.136 (2021: $0.178). EPS for the quarter amounted to $0.073 relative to $0.082 in 2021. The trailing twelve-month EPS amounted to $0.36. The number of shares used in the calculations is 263,157,895. MDS last traded on November 14, 2022 at $5.15 with a corresponding P/E of 14.36 times.
Balance Sheet Highlights:
As at September 2022, total assets amounted to $2.91 billion 11% more than $2.62 billion booked the year prior. This was primarily due to increases in ‘Right of Use Assets’ and ‘Inventories’ which closed at $5.41 million (2021: $78,007) and $1.35 billion (2021: $943.85 million), respectively.
Shareholders’ Equity totalled $1 billion (2021: $923.27 million) resulting in a book value per share of $3.81 (2021: $3.51).
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