MDS goes after greater growth in local market
Health-care products distributor Medical Disposables and Supplies (MDS) limited says that it is seeking to exploit all potential opportunities in the local arena as it moves to carve out greater market share and strengthen profitability.
“I wouldn’t be truthful if I said that we did not have our eyes outside of Jamaican waters; however, I think that there a few local priorities before we make that particular leap. We have to remain very focus on our core business and what we offer in the Jamaican market and we see a lot more upside and things to take care of here before we venture outside. We see a lot more potential in Jamaica before we take that step,” said chief executive officer (CEO) of MDS Kurt Boothe at last week’s edition of the Mayberry investor’s forum.
Fresh from its recent acquisition of a 60 per cent stake in Montego Baybased rival Cornwall Medical and Dental Supplies, the company said it has gained access to the dental supplies market in which it also hopes to become a dominant player.
“This dental supplies division is a new area for us and is a niche market that we are very excited about — it’s a smaller segment but definitely we see where we’ll be a key player,” Boothe stated, noting his excitement for this addition to the company’s portfolio along with the increased prospect for growth in its medical segment.
The 21-year-old company, which has been listed on the local stock exchange since 2013, operates a diverse business across three main divisions through which it supplies medical, pharmaceutical and more recently consumer products. The latter addition, the CEO said, was a strategic one, which has given the business a wider reach outside the traditional health sector providing opportunities for full service. With the division accounting for about five per cent of current sales, the intention, he said, was to double these earnings over the year aided by an increase in marketing activities.
Following fallouts in revenues at the onset of the novel coronavirus pandemic and two consecutive quarters of losses, the company has since rebounded and is optimistic for even more positive results in its upcoming year end financials. Up to the nine-month period ended last December, MDS recorded $1.7 billion in revenues and $29 million in profits.
“We used the downtime as a retooling opportunity to position our self for POST-COVID success. We used the time to reinvest and I think that our efforts are bearing fruit as all those negative effects are more in the rear-view mirror. Looking through the windshield I see far more positives and as far as I can see, we are headed in the right direction,” Boothe said.
Noting some other long-term prospects, he said that the launch of an additional public offering (APO) was not to be ruled out as a future possibility since the company was open to exploring all options available to fuel growth objectives. He further said that while the company was not actively seeking to venture into the distribution of COVID-19 vaccines, it was properly positioned to do so if need arise.
Commenting on a Vision 2030 goal of Government to upgrade the public health system over the next couple of years, the CEO said that the company was likewise poised to benefit from an increase in the demand for medical and hospital supplies.