Tue | Apr 7, 2020

MDS diversifies distribution portfolio

Published:Sunday | February 23, 2020 | 12:21 AMKarena Bennett - Business Reporter

Kurt Boothe, general manager of Medical Disposables & Suppplies Limited.
Kurt Boothe, general manager of Medical Disposables & Suppplies Limited.

Medical Disposables & Supplies Limited, MDS, is projecting around six per cent more in revenue from the additions of new brands to its portfolio.

That could boost the distribution company’s top line by around $140 million next year, ending March 2021, according to Financial Gleaner estimates that assumes MDS will make at least $2.3 billion in annual revenue this period.

MDS recorded nine-month revenue of $1.72 billion to December. That figure when annualised to March of this year amounts to about $2.3 billon.

Last week, MDS announced its appointment as distributor for seven product lines: Tree Hut, Hawaiian Silky, Wonder Gro, Baby Magic, Swinger Safety Matches, Stauffers and Sana Health Care Underpads in keeping with efforts to increase revenue from its medical and consumer division.

Increased investments

“The investments made in this division within the past six months are expected to increase total revenue by approximately six per cent in the next financial year,” MDS General Manager Kurt Boothe told the Financial Gleaner.

In a note to shareholders that accompanied the company’s third-quarter earnings report, Boothe also said the portfolio additions would serve “to diversify both risk and range”.

The company intends to add more brands to its line up, around which talks are ongoing. In the meantime, MDS “will place our immediate focus on our new releases and strategically introduce others going forward,” the GM said.

Haircare lines Hawaiian Silky and Wonder Gro, along with skincare line Tree Hut, have been added to the MDS Beauty Brands portfolio. The Stauffer’s snack line will be paired with the company’s existing line of candies to create a confectionery and snacks segment, while the Baby Magic infant care items will join the Aquafresh Kids and Children’s Panadol portfolio.

Swinger safety matches have been added to the household segment and the Sana Health Care Underpads to the medical division.

MDS operates three divisions: medical, consumer and pharmaceutical. The medical and consumer units account 30 per cent of revenue.

Boothe, who during the company’s annual general meeting last October noted that less focus had been placed in the medical division over the past few years, is on a drive to increase earnings in the division.

“At the end of our third quarter, we were performing at a 97 per cent run rate with respect to targets in this division. I think that we will achieve our final goal by the end of this period, which is our last inning for the year,” he said.