adminRuwa and was now a distributor for beverages giant Pepsi.
“We are manufacturing products such as Babyline petroleum jelly and Clere glycerine at the moment but we expect to expand the product range as more equipment arrives.
“We also became a distributor for Pepsi Company in March and in those three months we have been supplying all informal sectors across the country,” he said.
He said the two divisions had been recording a 35 percent growth in sales every month which was expected to continue until the end of the year .
Mr Motiwala added that the Pepsi was still an associate business but the company had plans to make it a subsidiary in the near future.
He noted that the disposal of Zimbabwe Pharmaceuticals had paid off as the group’s revenues were beginning to show a fair comparison of continuing operations.
MedTech has disposed of the drug manufacturing plant in Bulawayo citing poor demand for its products.
The subsidiary incurred a US$733 651 after tax loss for the 11 months to November 2012.
Mr Motiwala also said the group’s revenue had gone up from US$11,2 million in 2011 to US$13,8 million in 2012 following the disposal of Zimbabwe Pharmaceuticals.
“The distribution division has grown sales by 17 percent although the growth was constrained by the need to finance our manufacturing losses,” he said.
MedTech is owned 34,8 percent by Westminister Holdings, 32 percent by Titanium Marketing and Distributors and 9,9 percent by GPC Trust.
He added that the retail and wholesale division had experienced a 5 percent drop in sales from the prior year due to strong competition in the sector.
“However, this is a small part of the business so we are not very worried about the figures,” he added.
Gross profit percentage of 27,1 percent was recorded for 2012, an improvement from the 2011 figure of 26,6 percent on the back of a better sales mix with higher margins.
The company has been experiencing many operating constraints due to the liquidity crunch in the country and in each instance the group has had to dispose of itys units at apparently low prices.
MedTech is owned 34,8 percent by Westminister Holdings, 32 percent by Titanium Marketing and Distributors and 9,9 percent by GPC Trust.
Online Reporter