Medical Disposables’ profit down for Q1
- For the three-month period ended June 30, 2019, Medical Disposables and Supplies reported a net profit of $16.09Mn (EPS: $0.06), a decline of 15.8% relative to the $19.09Mn (EPS: $0.07) reported one year prior.
- For the period under review, total operating expenses increased by 19.7% to $102.45Mn. This upward move can be attributed to increases in administrative expenses (4.6%), selling and promotional costs (43.2%) and depreciation which increased by 16.8%. Additionally, total non-operational expenses increased 64.9% mainly due to a 33.9% increase in finance costs and a significant 124.0% increase in losses on disposals and foreign currency translation. These increased expenses contributed significantly to the reduced profit reported by the company.
- The stock has fallen 4.9% since the start of the calendar year, closing yesterday’s trading session at $7.11 per share. At its current price, the stock now trades at a P/E of 13.42x earnings which is below the Junior Market Distribution sector average of 25.64x.
(Source: MDS Financials