Medical Disposables and Supplies Limited generated revenues of $630.16 million for the second quarter ended September 30, an 11.52 per cent increase over the corresponding 2019 period.
However, the company incurred a loss after taxation of $6.04 million for the quarter, a decrease of $12.8 million when compared to the previous year.
The major contributor to the loss was an increase of $24.7 million in finance costs. Increased interest expense and one-off costs relating to the renewal of financing arrangements accounted for the lion’s share of the increase, management outlined in remarks attached to the quarter’s results.
Year-to-date, general manager Kurt Boothe indicated a total of $44.9 million was spent on finance related expenses as the company inked a new banking arrangement to facilitate the expansion in business.
For the six months, the company recorded loss of $13.1 million, down from a profit of $22.64 million at the same point last year.
Meanwhile, Boothe celebrated growth in sales which he said is being driven by increases in the performance of the pharmaceutical and medical divisions.
He said this is due 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.
Boothe outlined, “Although opening hours have been reduced, we are noticing a positive adjustment in consumer buying pattern to fit into the new reality.
“Institutional sales are also seeing a rally, although not back to regular levels, as hospitals and doctors’ offices continue to be observant of social distancing measures,” he outlined.
Year over year saw increases of 16 per cent or $62.9 million in pharmaceutical sales and 20.7 per cent or $21.6 million in sales of medical supplies.
Gross profit of $150.59 million was up 13 per cent or $17.47 million over the previous year, as a result of the increase in sales of pharmaceutical and medical disposable products.
Total operational expenses increased by $12.10 million from $106.27 million in the second quarter of 2019 to $118.37 million in Q2 of 2020, representing an increase of 11.39 per cent.
The movement was due to the costs associated with boosting the sales effort, Booth stated.
Year to date, sales revenue for the six months ended September 30, 2020 was $1.14 billion, an increase of $17.96M or 1.6 per cent when compared to the prior year.
Total company assets grew by $169.402 million or 10.54 per cent from $1.607 billion to $1.8 billion, due to increases in inventories, trade receivables and property, plant and equipment.
Total liabilities as at September 2020 have increased by $101.649M or 11.89 per cent from $854.9 million to $956.590 million over the prior year.
Boothe said this was due to an increase in the working capital line of credit which is being used to facilitate growth and business expansion.
Boothe said that the company continues to be affected by the containment strategies imposed to combat the spread of COVID-19.
However, he stated, “we continue to realign our business strategies to focus on deeper market penetration, while capitalising on a number of opportunities to provide medical responses with regards to the pandemic.”