A LOCAL pharmaceuticals manufacturer MedTech Holdings Limited has reported a loss of $571 700 for the year ended December 2013, attributing this to slow debtor repayments and shortage of capital.
The company also made a loss of $359 168 in 2012.
In a statement accompanying the group audited financial results, MedTech Holdings chairperson Rose Mazula said the group revenue increased by 14% to $15,7 million in 2013 due to strong demand in the distribution business.
“The 2013 year was one of mixed success for the group. The distribution business enjoyed strong demand and grew 13,6%. Challenges were experienced at MedTech Medical and scientific due to slow debtors’ payments and a shortage of capital,” Mazula said.
In the period under review, operating profit increased to $101 700 from $35 500 recorded in 2012 while net finance income grew to $151 370 from $81 867 the previous year.
He said the finance cost for the group reduced by 10% in line with lower interest rates and the interest costs continue to be actively managed by the directors.
“Debtors collection performance improved in the first half of the year. However, large customers delayed payments in the second half.
“The board has made adequate provision for doubtful debts amounting to $177 000 for Fast-Moving Consumer Goods (FMCG) segment and $130 804 in the Medical segment,” he said.
FMCG segment includes MedTech Distribution and Smart Retail.
During the period under review, FMCG segment sales grew by 13,1% compared with corresponding period, with distribution growth of 21,9% being offset by lower retail sales.
Revenue increased to $13,4 million compared to $11,8 million in 2012.
Mazula said the Medical segment delivered sales growth of 22,4%. However, this was lower than expected.
“Sales were constrained by ongoing problems in the medical supplies sector emanating from delayed payments to pharmacists and government institutions by Medical Aid Societies,” Mazula said.
Medical Segment group includes MedTech Medical and Scientific Pvt Ltd and Education and Laboratory Services division including laboratory services.
Meanwhile, the manufacturing segment recorded a growth in revenue of $2,1 million in the period under review compared to $213 609 in 2012.