November 12, 2021
Medical Disposables & Supplies Limited, for the six months ended September 2021 reported Revenue amounting $1.62 billion, an increase of 42%, relative to $1.14 billion booked the previous year. For the second quarter revenues totalled $936.48 million up 49% year over year (2020: $630.16 million). MDS noted, “This increase in sales is due to increased businesss activity as well as the consolidation of the operations of the new subsidiary Cornwall Enterprises Limited. There has been a significant improvement in the movement of pharmaceutical and medical disposable items, especially with fewer lock-down periods when compared to last year.”
Cost of sales went up 38% to close the period at $1.21 billion relative to the $876.81 million reported for the same period last year. This resulted in gross profit which increased 56% to a total of $410.49 million relative to the $263.42 million for the corresponding period in 2020. Gross profit for the second quarter amounted to $234 million, a 55% improvement compared to the $150.59 million reported in 2020.
Total operating expenses closed the period at $310.06 million, up 37% (2020: $226.78 million). Of this, selling and promotional costs went up 14% to $117.38 million (2020: $102.60 million). Administrative expenses increased by 55% to $174.95 million from $112.78 million last year. Depreciation for the first six month amounted to $20.35 million, 45% more than the $13.99 million reported in 2020.
Total operational expenses increased by 61% from $115.95 million recorded in the second quarter of 2020 to $186.45 million in the second quarter of 2021. The company highlighted that the increase, “significantly relates to the consolidation of the subsidiary’s operations.”
Notably, the Company booked other income of $4.75 million for the period ended September 30, 2021 relative to an income of $2.59 million recorded in the same period in 2020.
The Company’s loss on foreign exchange was reported at $5.41 million compared a loss of $76,823 in 2020. Finance cost decreased by 9% to total $45.47 million (2020: $50.14 million). Moreover, Gain on disposal of property, plant and equipment was $50,000 in 2020 (2021: nil). Finance income amounted to $5.11 million (2020: $418,183).
As a result, MDS reported profit before tax of $54.66 million relative to loss before tax of $13.11 million documented in 2020.
Taxation charges amounted to $7.72 million (2020: nil), resulting in a net profit of $46.93 million for the six-month period relative to net loss of $13.11 million in 2020. Net profit for the quarter amounted to $21.45 million (2020: Net loss of $6.04 million).
Earnings per share (EPS) for the period amounted $0.178 (2020: LPS of $0.050). EPS for the quarter amounted to $0.082 relative to LPS of $0.023 in 2020. The trailing twelve-month EPS amounted to $0.49. The number of shares used in the calculations is 263,157,895. MDS last traded on Novembe11, 2021 at $5.60 with a corresponding P/E of 11.37 times.
Balance Sheet Highlights:
As at September 2021, total assets amounted to $2.62 billion 47% more than $1.78 billion booked the year prior. This was primarily due to increases in ‘Property, Plant & Equipment’ and ‘Inventories’ which closed at $800.85 million (2020: 601.07 million) and $943.85 million (2020: $656.04 million), respectively.
Shareholders’ Equity totalled $923.27 million (2020: $820.65 million) resulting in a book value per share of $3.51 (2020: $3.12).
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