Medical Disposables Q1 profit jumps

Medical Disposables in IC TOP 10

Profit after tax at Medical Disposables and Supplies increased 22.7 percent to $19.2 million for first quarter to June, up from $15.7 million in the 2017 quarter.
Importantly, profit excluding foreign exchange loss of $4.2 million, rose a strong 49 percent to $23 million. The impressive increase in operating profit flowed from a 12.6 percent increase in sales in the quarter to $541 million, from $481 million in 2017. “This performance was mainly attributable to growth in the consumer business segment and price increases, Kirk Boothe, Managing Director, stated in commenting on the sales performance for the 2018 quarter. The increase is at a slower pace than sales for the December quarter of 21 percent and 19 percent for the 2018 fiscal year.
Gross profit increased $14.3 million or 14 percent to $117 million for the quarter, representing 23 percent of sales, up from 21 percent in 2017.
Sales and distribution cost slipped slightly from $33 million to $32 million, depreciation inched to $6.1 from $5.9 million while administrative expenses rose to $49 million from $41.4 million in 2017, as salaries and commissions increased by $3.35 million or 8 percent, General insurance rose by $800,000 or 47 percent following increased inventories and other assets and Professional fees and Information Technology Consultancy fees increased by $1.74 million or 36 percent for infrastructural improvements.
Cash flow generated $25 million and after changes in working capital, ended at $23 million with cash on hand ending at $29 million. Inventories fell to $421 million from $544 million at the end of March as a direct result of the increase in business opportunities, but receivables remained over $300 million at $318 million, a bit on the high side and trade payables fell to $292 million. Borrowed funds stood at $331 million. Shareholders’ equity rose $19 million to $692 million.
Earnings per share for the quarter was 7 cents, IC Insider.com projects 65 cents for the full year on the basis that the loss of exchange will remain substantially at the June quarter level and $1 per share for the next fiscal year. The PE ratio based on forecast earnings, is 9 at Fridays’ closing price of $5.80.