Impressive sales growth at Medical Disposables

Kurk Boothe - Medical Disposables Managing Director

Kurk Boothe – Medical Disposables Managing Director

Sales revenue climbed impressively by 26 percent in the September quarter as well as year to date but operating profit performance is not as inspiring, being flat in both periods at Medical Disposables & Supplies. The company reports profit after tax at, 66 percent higher at $21 million for the quarter, versus the 2013 quarter.
In 2013 after taxation of $4.4 million, $13 million was left as net profit. For the six months, profit after tax of rose 60.6 percent to $38.7 million from $24 million, after accounting for $8.4 million in taxes.
For the quarter, gross profit grew 29 percent to $70.4 million compared to $54.5 million and for the six months an increase of 28 percent to$136 million. “This improvement was due to the increased sales in all categories and consistent review of our pricing structure to maintain gross margin efficiency,” Kurk Boothe, Managing Director said in his report to shareholders. The increase in gross profit was helped by an improvement in gross profit margins, increasing during the latest quarter to 33.14 percent from 32.12 last year and to 33.65 percent for the six months versus 32.90 percent in the same period of 2013.
Sales revenue climbed 26.2 percent to $283 million in the September quarter over the $224 million in 2013. For the half year, sales grew 26 percent to $540 million from $429 million in 2013. “This result 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,” Boothe stated.
IC Insider understands that sales have moved to more than $100 million per month since the latter part of the last quarter. If this is maintained then it should lift profit going forward and could push earnings to around 40 cents per share for the current financial year.
Expenses| Total operational expenses increased 49.8 percent for the quarter and the half year to September to $47.6 million compared to $31.8 million in 2013 and to $93.8 million for the six months period.
“This increase was driven mainly by staff related expenses, utilities, professional fees and information technology services. Staff related expenses, in particular, were driven by the strategic decision to realign the staff complement and compensation to sustain the current growth, development and expansion of the business, Boothe said.
Finances| Trade receivables have climbed to more than two months of sales at $240 million and inventories have moved up as well to just under three months’ supply at $182 million. Cash funds are at $86 million but borrowed funds have climbed to $106 million.
The stock is one to watch with the price of the stock on the junior market of the Jamaica Stock Exchange at $1.92 at a PE less than 5 times the 2015 profit. The company declared a 4 cents per share dividend, payable in November 19.

Slight gain for juniors

amg-packaging280x150 The Junior Market closed trading with 768,343 units valued at $761,700. The JSE Junior Market Index gained 0.54 points to close at 660.02, only 5 securities traded, 2 advanced and 2 declined.
At the close of the market, there were 2 stocks with bids higher than their last selling prices and 4 stocks with offers that were lower. The junior market continues to be weak with 10 securities closing with no bids to buy. There were 4 securities that had no stocks being offered for sale.
Caribbean Producers put through 50,000 units with a gain of 10 cents to end at $2.30 and Lasco Manufacturing had 187,742 units trading, to close at 95 cents, after gaining 4 cents.
AMG Packaging traded 300 shares and lost 1 cent, to end at $2.24, a new 52 weeks low and Consolidated Bakeries traded 271,241 shares, lost 3 cents at 82 cents and Lasco Financial with 259,060 units trading, closed at 96 cents.

5 up 4 down on JSE

Tuesday’s activity on the Jamaica Stock Exchange, resulted in the prices of 5 stocks rising and 4 declining as 20 securities changed hands, ending in 2,144,368 units trading, valued at 12,272,863.83, in all market segments.
JSE sum 28-10-14 IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator had 6 stocks with bids higher than their last selling prices and 10 stocks with offers that were lower.
Main Market| The JSE Market Index lost 76.43 points to 71,566.02 the JSE All Jamaican Composite index declined 85.47 points to close at 78,732.04 and the JSE combined index gained declined by 46.84 points to close at 73,455.89.
Gains| Stocks gaining with last traded prices, at the end of trading in the main market are, Jamaica Broilers exchanged 29,600 shares and rose 15 cents to at $4.15, Jamaica Producers with 13,114 shares as the price ended a cent higher at $15.51.
Firm| The stocks in the main market to close without a change in the last traded prices are, Berger Paints had 22,799 shares trading at $1.60, Cable & Wireless with 40,855 shares changing hands ended at 29 cents, Jamaica Money Market Brokers had 15,100 ordinary shares changing hands at $7, National Commercial Bank with 422,293 shares traded at $17.55, Proven Investments had 7,000 units to close at 18 US cents, Sagicor Group 7,084 shares closed at $9.60 after trading as high as $10 earlier in the day, Sagicor Real Estate Fund with 16,000 units closed at $6.65, Scotia Investments with 555 shares at $21.40 and recently listed Sterling Investments with 100 shares changing hands, closed at $134.
Declines| The only stock with losing at the end of trading in the main market is, Scotia Group with 52,894 shares to close with a loss of 29 cents at $19.11.
Preference| Jamaica Money Market Brokers 8.75% preference share traded 691,050 units at $3 and Proven Investments 8% preference share traded 6,000 units at $5.

3 junior market stocks rose & 3 fell

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The Junior Market closed trading with 819,924 units valued at $903,898. The JSE Junior Market Index rose 2.67 points to close at 659.48, only 6 securities traded, 3 advanced and 3 declined.
At the close of the market, there were 2 stocks with bids higher than their last selling prices and 6 stocks with offers that were lower. The junior market continues to exhibit weakness with 10 securities closing with no bids to buy. There were 4 securities that had no stocks being offered for sale.
Junior market stocks trading are, Access Financial with 705 shares, lost 47 cents to end at $10.01, Caribbean Producers with 26,028 shares lost 15 cents to end at $2.20, Dolphin Cove had just 200 units changing hands at 50 cents up, at $8.50, Lasco Distributors traded 282,050 units, closed 5 cents higher at $1.25, Lasco Financial Services with 6,940 units, gained 6 cents and closed at 96 cents and Lasco Manufacturing had 504,001 units trading to close at 91 cents after losing 2 cents.

5 stocks traded in junior market 4 fell

The Junior Market closed with 175,408 units valued at $314,853 trading. The JSE Junior Market Index fell 4.59 points to close at 656.81, only 5 securities traded, 1 advanced and 4 declined.
JMIndexAt the close of the market, there were 3 stocks with bids higher than their last selling prices and 3 stocks with offers that were lower. The junior market continues to exhibit weakness with 10 securities closing with no bids to buy. There were 4 securities that had no stocks being offered for sale.
Stocks that traded on Monday in the junior market are, General Accident with 32,700 shares, the price rose 4 cents to end at $1.55, Lasco Financial Services with 7,600 units, closed at 90 cents, down 10 cents, Lasco Manufacturing had 24,447 units trading to close at 93 cents, after losing 2 cents, Medical Disposables with 75,500 shares, lost 4 cents to end at $1.92 and Paramount Trading had 35,161 units changing hands at $2.55, after dropping 15 cents.

4 junior market companies trade

amg-packaging280x150 The Junior Market closed trading with 985,533 units valued at $941,249. The JSE Junior Market Index fell 8.63 points to close at 652.77. Only 4 securities traded in the market, continuing a long period of low participation, 1 advanced and 2 declined.
At the close of the market, there were 4 stocks with the bids higher than their last selling prices, and 4 stocks with offers that were lower. The junior market continues to exhibit weakness with 12 securities closing with no bids to buy. There were 4 securities that had no stocks being offered for sale.
in actual trading, AMG Packaging with 2,480 shares lost 25 cents to end at $2.25, a new 52 week’s low, Lasco Distributors traded 92,000 units and closed 2 cents higher, at $1.17, Lasco Financial Services with 8,200 units, closed at $1, Lasco Manufacturing had 879,353 units trading to close at 91 cents after losing 7 cents and Paramount Trading had 3,500 units changing hands at $2.70, the offer closed at $2.50 at the end of trading.

Lasco Finance up 15 cents

LascoFinancialServices_logo280x150 The Junior Market closed trading with 124,625 units valued at only $158,408. The JSE Junior Market Index increased 2.04 points to close at 661.40 with only 3 securities traded, 1 advanced and none declined.
At the close of the market there were 5 stocks with bids higher than their last selling prices and 3 stocks with offers that were lower. The junior market continues to exhibit weakness with 11 stocks closing with no bids to buy. There were 5 securities that had no stocks being offered for sale.
At the close of trading the active stocks are, Caribbean Producers trading 24,625 shares to end at $2.38, Lasco Financial Services gained 15 cent with 80,000 units, to close at $1 and Lasco Manufacturing had 20,000 units trading, to close at 98 cents.

Kremi invest for future growth

Kremi ice contCaribbean Cream, producers of the Kremi ice cream, has been spending big bucks for expansion and growth. That action has seen a major improvement in sales but little change in profits for the six months to August. While sales revenues climbed 20 percent in the two quarters this fiscal year, profit is down in the second quarter to August from $7.9 million to $1.35 million and for the six months, profit is flat at $17.8 million.
Gross profit climbed 29 percent to hit $58 million, but margin fell in the August quarter to 30 percent from 37.8 percent in the May quarter, putting the six months margin at 34 percent, from an increase in the gross profit of 44 percent, to $127 million from $88 million. Profit margin has improved in 2014 over the levels in the first and second quarters of 2013. Last year, gross profit margin was 26.5 percent for the August quarter and 27.3 percent for the half year. Management in their report to shareholders, indicated that the slippage in profit margin in the August quarter, is due to unexpected repairs and maintenance of equipment, as well as increased depreciation charge.
Forecast| Based on greater sales in the last half of the fiscal year, margins are expected to move into the 80 percent range, as direct overhead costs are fairly static. IC Insider is forecasting earnings of $77 million or 25 cents per share for the year ending April 2015, from projected revenues of $1.05 billion. The Kremi brand is now being introduced to the retail market to compete with other brands, mostly imported, on the shop shelves. Its better taste and pricing should ensure an increasing presence and sales in the future.
Financials| In the last 12 months the company acquired fixed assets amounting to $212 million, pushing total fixed assets net of depreciation, to $400 million, from $221 million at the end of August 2013. Inventories climbed to $115 million from $69 million a year ago, due to increased containers and raw materials, to facilitate expansion of the product line and increased sales. Receivables fell from $70 million to $33 million. Cash that was at $63 million has been used up leaving less than a million dollars at the end of August. Borrowings climbed to $163 million from $141 million, at the end of 2013 second quarter. Amounts due to creditors ballooned to $130 million from $61 million the year before.

Only 3 junior market securities trade

CaribbeanProducers(CPJ)600X250 The Junior Market closed trading, with a mere 27,140 units valued at $54,491. The JSE Junior Market Index fell 4.50 points to close at 659.36 as only 3 securities traded with all 3 declining.
At the close of the market, there were 5 stocks with bids higher than their last selling prices and 2 stocks with offers that were lower. The junior market continues to exhibit weakness with 11 stocks closing with no bids to buy. On the other hand there were 7 stocks that closed without offers to dell.
In market activity, Caribbean Producers with 20,000 units, closed 7 cents lower at $2.38, Consolidated Bakeries traded 6,640 units trading with a cent fall, to end at 80 cents and Lasco Financial with 500 shares, closed with a loss of 12 cents, at 85 cents.

Knutsford Express at new high

KnutsFordExpress Trading picked up on the junior Market as 8 securities traded, the highest number for some time. At the close of the market, trading activity led to 2,405,521 units valued at $2,877,589 changing hands.
The JSE Junior Market Index increased 0.32 points to close at 663.86 as 3 stocks advanced and 3 declined with Knutsford Express closing at a new all time high.
At the end of trading, there were 3 stocks with their bids higher than their last selling prices and 2 stocks with offers that were lower. Although the number of securities trading picked up, the junior market still continues to show signs of weakness with 9 stocks closing with no bids to buy. On the other hand there were 7 securities that had no stocks being offered for sale.
At the close, Access Financial Services traded 2,295 shares to end with a decline of 2 cents at $10.48, Dolphin Cove with 3000 units trading closed at $8, Knutsford Express with 7,726 shares closed at $5.50 to gain 50 cents, the highest price since listing in January, Lasco Distributors put in 1,000,000 units at $1.15, Lasco Financial Services traded 919,500 at 97 cents, with a 3 cents decline, Lasco Manufacturing lost 6 cents while trading 220,647 units to close at 98 cents, Medical Disposables had 245,000 units changing hands at $2, up 10 cents and Paramount Trading gained 20 cents in trading 7,353 units at $2.70.