May 30, 2023

Medical Disposables & Supplies Limited (MDS) for the year ended March 31, 2023:

Revenue increased 10% to $3.77 billion (2022: $3.42 billion). For the quarter, revenue increased 9% to $1.01 billion (2022: $922.61 million).

Cost of sales increased 11% to $2.76 billion (2022: $2.48 billion). Consequently, gross profit increased 8% to $1.01 billion (2022: $936.46 million). For the quarter, gross profit declined 11% to $260.49 million (2022: $291.94 million).

Other income increased 9% to $10.10 million (2022: $9.27 million).

Total operating expenses increased 14% to $828.10 million (2022: $723.93 million) despite the 15% increase in administrative expenses to $456.39 million (2022: $395.86 million) as impairment of financial assets declined 75% to $3.66 million (2022: $14.39 million).

Operating profit declined 12% to $195.72 million (2022: $221.80 million). For the quarter, operating profit declined 56% to $27.54 million (2022: $62.73 million).

Finance income declined 78% to $2.47 million (2022: $11.10 million) while finance cost increased by 45% to $104.17 million (2022: $71.65 million).

Following the 60% decline in taxation charges to $16.52 million (2022: $41.03 million), net profit declined 24% to $80.20 million (2022: $105.43 million). For the quarter, net profit declined 58% to $12.39 million (2022: $29.53 million).

Net profit attributable to shareholders declined 26% to $72.14 million (2022: $96.97 million).

Earnings per share (EPS) amounted to $0.27 (2022: $0.37). For the quarter, EPS amounted to $0.05 (2022: $0.11). The number of shares used in the calculations is 263,157,895. MDS’s stock price closed the trading period on May 29, 2023 at $4.80 with a corresponding P/E ratio of 17.51x.

Balance Sheet Highlights:

Total assets as at March 31, 2023 increased 13% to $3.03 billion (2022: $2.68 billion). This movement was primarily due to a 31% increase in ‘Inventories’ to $1.49 billion (2022: $1.14 billion).

Shareholders’ equity as at March 31, 2023 increased 5% to $1.06 billion (2022: $1.01 billion) resulting in a book value per share of $4.03 (2022: $3.85).

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