adminHealthcare products provider, MedTech Holdings bounced back to profitability in 2015 posting a $231 368 net profit from a $1,2 million loss the previous year.
Group chairman Rosemary Mazula said exchange rate gains and tight credit control measures had boosted the performance while sales had dropped.
In the trading year, revenues were down seven percent to $13,3 million, with the group pointing at increased unemployment levels in the country as impacting on demand and sales of health care products.
“A major driver of the improved performance was the weaker South African Rand and the Group has benefited from translation of foreign denominated balances into US dollars as evidenced by the increase in net exchange rate gains included in the net finance income for the year of $855 739,” Mrs Mazula said.
The group opted not to declare a dividend given liquidity challenges being faced in the economy to augment its working capital needs.
In terms of divisional performance, MedTech Holdings said its fast moving consumer goods section made up of MedTech Distribution and Smart Retail saw its revenues slumping to $11,3 million from $11,9 million in prior year.
“Operations at Smart Retail are being wound down and the business will be closed in 2016,” Mazula said, pointing to poor performance by the retailer.
The medical sales division also recorded a dip in revenues to $1,2 million from $1,4 million
The division is made up of MedTech Medical and Scientific (Private) Limited and Education and Laboratory Services Division including Laboratory Services.
The manufacturing side also saw its earnings drop to $2,1 million from $2,6 million.
“Decrease in revenue is attributable to depressed economic environment, increased competition from the informal sector and stock returns,” Mrs Mazula said.
MedTech Food and Beverages, the group’s associate company was the only one to register an improvement in revenue performance with earnings up to $3,7 million from $2,9 million. – New Ziana.
Online Reporter