Medtecs International has reported a loss of US$3.7 million ($5.3 million) for 1HFY2022, versus earnings of US$19.1 million in the year earlier six months. Revenue in the same period was down 63% y-o-y to US$31.6 million.
The company, which makes personal protection equipment used by healthcare workers and other users, enjoyed big spike in the demand of its products.
With the worst of the pandemic over, demand and selling price of these products have fallen.
The year earlier revenue was also lifted by customers building up inventory.
The Singapore listed but Taiwan-based firm says it will continue to leverage ecommerce channels to push sales of its own branded products, which can presumably fetch better margins.
The company warns that for the current 2HFY2022, it sees a continued drop in demand.
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It has recently commenced production in its glove plant in Cambodia. It has also completed vertical integration of the facemask production facility in the Philippines. Such moves gives the company better control over its supply chain.
“The Covid-19 pandemic has increased awareness and demand for the Group’s healthcare products and PPE.”
“The group remains and will continue to strive to be in the forefront of safety and disease control and management with our high-quality PPE and healthcare related products,” says Medtecs.
Medtecs shares closed Aug 12 at 19 cents, down 1.06%.
