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Oliver Kazunga Senior Business Reporter
PHARMACEUTICALS manufacturer MedTech Holdings’ revenue dropped 12.6 percent to $6.1 million in the first six months of the year from $7 million in the same period last year.The group board chair Rose Mazula attributed the decline in revenue to the depressed economic environment and suppressed consumer spending.
“The group’s revenue decreased from 12.6 percent from $7 million in the first half 2013 to $6.1 million in the first half 2014. The difficult environment impacts on fast moving consumer goods (FMCG) sector revenues,” said Mazula yesterday in a statement accompanying the group’s financials for the half year ending June 30, 2014. The depressed economic environment and associated reduction in consumer spending adversely affected demand from retail and wholesale customers.
“We’ve also withdrawn stock from credit customers who have defaulted on their payment obligations, and in the process issued significant credit notes for stock returned.”
Mazula said management had made corresponding cuts in overhead and operational costs but said these were not sufficient to avoid a loss situation.
During the period under review, the group posted a gross profit of $1.6 million compared to $2,257,934 the same period last year.
The company’s FMCG segment includes MedTech Distribution and Smart Retail.
Mazula said the group’s FMCG segment sales declined 6.1 percent posting a revenue base of $5.4 million in the first half compared to $5.7 million primarily due to the depressed economic environment.
The group’s associate company, MedTech Food and Beverages, which began operations in 2013, posted revenues of $1.1 million in the first half.
“The entity has not yet achieved profitability, and is anticipated to reach profitable trading volumes of $400,000 per month this year,” she said.
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