LISTED healthcare concern, Medtech Holdings this week announced that it achieved a turnover of US$13,8 million for the year to December 31 2012 from US$11,2 million last year.
Gross profit during the period under review was US$3,7 million from US$2,9 million. The group’s distribution division contributed US$9,6 of the revenue from US$8,2 million last year.
“The distribution division grew sales by a modest 17 percent year on year growth being constrained by working capital shortages arising from the need to finance manufacturing losses,” said the company.
Medtech Holdings Limited is a Zimbabwe-based company engaged in the manufacturing, marketing and distribution of health, hygiene, beauty and pharmaceutical products.
The company is currently in the process of selling its loss making subsidiary, Zimbabwe Pharmaceuticals, after it was closed in November due to viability constraints.
The board has since accepted a firm offer from a local company for the entire shareholding of Zimbabwe Pharmaceuticals, for a nominal sum, but with certain guarantees against historic debt with some security in place for this debt.
The buyers are understood to be making every effort to raise the necessary security although certain regulatory and shareholder approvals must also be satisfied for this transaction to be finalised and shareholders will be advised of developments.
The Group now looks forward to growing profitably without having to fund manufacturing
losses at Zimbabwe Pharmaceuticals.
Meanwhile, the retail and wholesale division’s revenue was US$2,1 million from US$2,2 million last year. The division saw sales drop 5 percent year on year due to the discontinuance of certain product lines and strong competition in the sector.
“Management is responding by listing product with major retailers and entering retail partnerships at prime sites in order to make the product more accessible. Improvements in store have helped to maintain sales volumes,” Medtech said.
Revenue from Medtech’s medical and scientific arm’s revenue rose to US$1,5 million from US$361 258. The division has delivered gross and sales growth of over 300 percent following the mid-year 2011 start-up in line with expectations.
“A cash injection from winter sales of Zimpham product acquired out of season will assist in funding working capital as the division experience strong demand for both local and imported products,” the company said in its latest financial report.Advertisement
In 2012 Medtech reported an operating loss of US$112,315 as the medical and scientific business is still in the early stages of development, with business expectations being to reach profitability in 2014 after a break even in 2013.
Going forward the board said it was “cautiously optimistic for 2013”. The company said it was hopeful that the country would hold peaceful elections.
“The macro-economic outlook could witness an upturn if policy consistency and investor confidence improves,” the statement added.