Medtech revenues up 14%

Published: 08 April 2014

Pharmaceuticals manufacturer Med-Tech Holdings' revenues grew by 14 percent to $15,7 million last year due to strong demand in its distribution business.

The financing cost of the group reduced 10 percent in line with lower interest rates.

The group's debtors collection performance improved in the first half of the year, however large customers delayed payments in the second half.

"The board has made adequate provision for doubtful debts amounting to $177 000 for FMCG segment and $130 804 in the medical segment.

Medtech's FMCG segment revenues during the period under review increased by to $13,3 million from $11,8 million in 2012.

Gross margins in Distribution were lower due to proportionally higher sales to wholesale customers, said the group.

The group's medical segment delivered sales growth of 22,4 percent which was, however, lower than expected.

Management attributed this to "ongoing problems" in the medical supplies sector emanating from delayed payments to pharmacists and Government institutions by medical aid societies.

New associate Medtech Food and Beverage (Pvt) Ltd recorded sales of $1,58 million. However, the share of the associate company result was not included for the year as management considered it "insignificant".

Medtech Medical and Scientific experienced challenges due to slow debtors payments and a shortage of capital.

Meanwhile, plans to offload Zimbabwe Pharmaceuticals are underway with management pointing out that it has since accepted an offer from a local company for the entire shareholding of the subsidiary, and that "talks with the buyer are ongoing."
- BH24

Tags: Medtech,