Medtecs International has reported earnings of US$17.3 million ($23.5 million) for the FY2021 ended December, down 87% from earnings of US$131.7 million in the previous year.
Revenue for the year fell 64% y-o-y to US$144.2 million due to lower global demand and lower global market prices for personal protective equipment (PPE) and face masks.
Revenue from Medtecs’ original product manufacturing (OPM) segment fell due to lower sales of PPE and face masks, while revenue for its hospital services division grew slightly on higher service cost on linen consumption in Taiwan.
Revenues from trading, distribution and others fell on the lower demand as well.
Cost of sales fell 55.4% y-o-y to US$102.1 million.
Gross profit fell 75.5% y-o-y to US$42.0 million due to lower margins with the slowdown in Covid-19 cases around the world. During the year, gross profit margins (GPM) fell to 31.0%, from the 44.1% in FY2020.
The company, on Feb 11, said that it expected to incur a net loss for the 4QFY2021 due to inventory provisions for personal protective equipment (PPE) from the lower average selling prices (ASPs) in the current market.
As at end-December, cash and cash equivalents stood at US$49.0 million.
A final dividend of 0.6 US cents has been declared for the period.
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As at 11.58am, shares in Medtecs are trading 0.5 cent lower or 1.96% down at 25 cents.
Photo: Medtecs
