Medtecs International Corporation has issued a profit guidance for its performance in 1HFY2022 ended June.
In a Singapore Exchange (SGX) filing on July 20, the integrated healthcare product and services provider says it expects to generate a loss for the period and will announce its 1HFY2022 results on or before Aug 15.
“This is mainly due to lower orders from our original equipment manufacturing (OEM) clients and reduction of demand and average selling prices of facemasks and personal protective equipment (PPE) globally,” says Medtecs.
They add that sales in Taiwan and the Philippines and e-commerce sales remained steady during 1HFY2022.
However, the company incurred additional marketing, advertising and distribution expenses to promote the brand, its own-brand products and to grow its e-commerce business.
The group also incurred additional expenses in the delayed set-up of its nitrile glove factory in Cambodia, which is being built via the group’s joint venture company, Resilient Medical, as announced in March 2021.
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“Due to the supply chain disruption in China, the expected completion date for the nitrile glove factory has been delayed by three months. However, the company continues to actively catch up on milestone completion dates, with mass production expected to commence in the third quarter of 2022,” says Medtecs.
Medtecs’ board considers that the delay in the completion of the nitrile glove factory is not expected to have a material adverse impact on the overall financial position of the group, which remains “healthy”.
Shares in Medtecs International closed 0.5 cents higher, or 2.5% up, at 20.5 cents on July 20.
