Medical Disposables and Supplies grows revenue, profit
Medical Disposables and Supplies Limited (MDS) has reported increased revenues of $848 million for the nine months ending December, a 27 per cent increase year on year.
The medical supply company also reported a 60 per cent rise in net profit, from $36 million to $57 million. More than half of the profit gains related to the near elimination of its income tax bill under a holiday allowed for junior stock market companies.
In keeping with its expansion plans, MDS recently bought a 27,000-square-foot warehouse from Kingston Properties Limited for $230 million, which it says has more than doubled its current capacity.
The family-run company was listed on the junior stock market December 2013, thirteen years after its 2000 launch into business.
"The increase in revenue was in keeping with the company's strategic forecast of growing market share and widening the customer base in all categories of its business operations," MDS said in its nine-month earnings report.
The increased net profit was as a direct result of the improved performance in sales revenue in the period, the company said.
While remaining mum on specific plans for the new warehouse, General Manger Kurt Boothe said the structure would allow for the consolidation of all operating activities in one location and allow for better coordination of MDS operations.
He declined to say what plans the company had for its existing property, including whether it would be sold.
"We are fortunate to have options, and we will pursue the best business opportunity, depending on developments," he said.
The Hagley Park Road-based company also saw an increase in operational expenses of $145.7 million for the reporting period, or a 45.5 per cent increase, due, it said, to staff-related expenses, utilities, professional fees, and information technology services.
"Staff-related expenses, in particular, increased because of the strategic decision to realign the staff complement and compensation to sustain the current growth, development, and expansion of the business," MDS said.