Despite recording a 69 per cent decline in year-on-year profits after tax, Jamaica’s Medical Disposables and Supplies Limited continues to show growth in its balance sheet.
The Jamaica Stock Exchange-listed company’s total assets for the year ending March 31, 2020, increased by JM$93.6 million — or 5.7 per cent — to reach JM$1.74 billion.
Most notably, the company’s property, plant and equipment moved from JM$557.7 million in 2019 to JM$611.1 million in the period under review. At the same time, MDS’ receivables jumped by 35.7 per cent, ending the year at JM$529.4 million.
It is for this reason that General Manager Kurt Boothe told Caribbean Business Report that, “While it’s easy for onlookers to look at our [profit and loss], we are steadily focused on increasing on the balance sheet side to ensure we are fundamentally sound for long-term growth.”
Within the year, MDS invested in significant upgrades to its property, “which includes outfitting it for additional warehouse space as well as office space”, Boothe pointed out. Additionally, he highlighted that the company acquired an adjoining property on Carpenter Avenue in St Andrew, Jamaica, to accommodate the need for more warehouse space.
“While it’s easy for onlookers to look at our [profit and loss], we are steadily focused on increasing on the balance sheet side to ensure we are fundamentally sound for long-term growth.”— Kurt Boothe, general manager, Medical Disposables & Supplies Limited
In response to this disclosure, Caribbean Business Report asked the general manager if the company had considered another location in Jamaica. Though hesitant, Boothe stated that the leadership of the company is currently assessing that possibility.
More growth with more revenue
He also pointed out that MDS will continue to invest infrastructure that will support its increase in revenue. For the financial year under review, MDS posted a 12 per cent improvement in revenue; an increase of JM$259 million to JM$2.48 billion as at March 31, 2020.
According to a report to shareholders, this uptick was “mainly attributable to a combination of an increase in product offerings, price increases and above-average growth in the pharmaceutical division”. It further pointed out that MDS, during the year, underwent a reorganisation process that led to the company creating three divisions.
Booth revealed that the company now had a pharmaceutical division, medical supplies division, and a consumer goods division.
MDS’ growth in new products is both organic and as a result of new contractual arrangements. In fact, the general manager indicated that the company is exploring opportunities with new product lines through which it can gain exclusive distributorship.
By doing, Boothe said, the company can expand its ability to source products, exercise flexibility and enjoy some level of affordability.
“The company is growth-focused,” he explained. “We are expanding our offering not only in new products but also in new areas.”