Medtecs International Corporation has reported net profit of US$13.2 million for the 1QFY2021 ended March, 259.9% higher – or 3.6 times – higher than net profit of US$3.7 million in the corresponding period the year before.
In its 1Q business update, the group stated that demand for its personal protective equipment (PPE) remains elevated due to new waves of infection and the rise of new variants around the globe.
However, after a record-breaking year in 2020, the group says it would be a “challenge” to exceed the year’s figures.
To this end, the group has initiated the provision of its PPE stockpiling services with group purchasing organisations, institutional clients and government, and as a result, has secured several supply contracts in the Philippines and Cambodia for the 1QFY2021.
Medtecs’ revenue increased by 5.9% y-o-y to US$42.2 million.
SEE:Medtecs International dresses and protects global healthcare workers
Gross profit for the quarter surged 160.5% y-o-y to US$18.6 million from US$7.2 million in the year before.
The group says it has begun looking for sites for the construction of a PPE manufacturing facility to further strengthen the group’s position as a leading PPE stockpiling provider and Asia’s first multi-national group procurement platform with one-stop shop capabilities.
The group adds that it continues to expand its retail business including through its online store on Amazon in the US.
Its daily sales volume on Amazon has surged by over 10 times q-o-q since the 4QFY2020 ended Dec 31, 2020.
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“The board believes that with increased consumer awareness, the group’s retail business will not only bolster its revenue stream but will generate more recognition and confidence which will help the group secure more long-term orders with a view to ultimately building a resilient global PPE supply chain with government agencies, brand owners and industry players,” it writes.
Medtecs says it expects its revenue for the 2QFY2021 ending June to exceed its figures for the 1QFY2021.
Shares in Medtecs closed 4 cents lower or 3.7% down at $1.03 on May 6.
