In business updates for the 9M2021 to Sept 30, Medtecs International Corp announced that its total revenues decreased to US$115.36 million, with after-tax net profit decreasing by 77% to US$19.26 million, compared to the same period last year.
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Demand for the Group’s personal protective equipment (PPE) has lowered compared to previous quarters due to completion of stock-piling exercises by its existing customers in 2020, the subsequent inventory adjustment attributable to certain customers, and the stabilisation of the supply and prices of the PPE market globally.
Profitability also declined substantially due to lower revenues, a shift in the Group’s revenue stream to lower-margined OEM items, and higher selling and distribution costs.
Medtecs is investing in building its “Medtecs” and “CoverU” brands and in advertising and distribution of its products to increase Business to Consumer (B2C) sales through major chain stores, pharmacies and supermarkets. In addition, the company is making full use of e-commerce platforms such as Amazon, Alibaba, Shopee and Medtecs Express through its business model of “Source and Sell Globally” to further promote growth in its retail business.
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In addition, the company remains active in securing stock-piling government contracts and has several ongoing stock-piling projects for PPEs and military uniforms in the Philippines. As part of its growth strategy, Medtecs plans to set up a glove manufacturing facility in Cambodia to expand its production capacity and product offering with a view to ultimately building a resilient global PPE supply chain.
