Medical supplies manufacturer and distributor MedTech Holdings Limited posted a profit before tax of $68,474 during the six months to June 2021, from a previous loss position same period last year of $8,311,697, the company has announced.
Group revenues were up 73 percent to $268,004,810 from $155,307,402 in 2020.
“The currency stability resulted in price stability leading to a slowing inflation rate. The price stability, along with increased incomes in certain sectors of the economy saw an improvement in consumer demand for our products,” the Group said.
The Group said sales volumes increased by 67 percent compared to the comparative prior period because of a reduction in competition from grey imports and smuggled goods due to movement restrictions.
During the period under review, there was constant supply of replacement stock and less stockouts and this had enabled the Group to constantly supply products at competitive prices resulting in increased shelf space and increased market share.
The FMCG Segment which includes MedTech Distribution, Smart Retail, Choice Brands and HeyZoom saw revenue increase by 106 percent compared to the comparative prior period.
Sales volumes increased by 127 percent as compared to the comparative prior period.
The manufacturing segment which comprises of Chicago Cosmetics (Private) Limited saw revenues increase by 43 percent compared to comparative prior as sales volume increased 45 percent.
However, the Group experienced increased distribution costs due to fuel price increases, increased city council rates and increased salaries.
The Group applied for the registration of legacy debts amounting to ZAR25,5 million to foreign creditors. Of the ZAR25,5 million, ZAR23,4million had been validated while appeals have been lodged for ZAR2,1million.
Group total equity amounted to $ 154 million as assets reached $ 457 million against liabilities of $ 303 million.
