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Explosive demand for protective gear sends Medtecs' Q3 top line and net profit up
PANDEMIC beneficiary Medtecs International Corporation reported its third quarter financial results, in which its top line and net profit surged on explosive demand for personal protective equipment (PPE).
It expects demand to be strong, given that the prospect of a safe and effective vaccine is still uncertain, said Medtecs in a regulatory filing on Tuesday.
The Catalist-listed medical products supplier's revenue for the quarter to September was 636 per cent higher at US$124.6 million; its net profit jumped 1,115 times to US$45.7 million.
The company's top line was US$287.2 million for the first nine months this year, an increase of 4.74 times over the same period last year. Net profit was US$84.6 million, an increase of 198 times over the same period last year.
Earnings per share for the first three quarters was 15.404 US cents.
The coronavirus has triggered a surge in global demand for PPE, which accounted for Medtecs' increase in revenue and net profit in the first three quarters of 2020, the company said.
It has adopted several strategies and acted swiftly to deliver these results, including leveraging e-commerce platforms and data analysis to source for potential customers and new vendors.
The company said: "With long-term indicative orders in hand and stabilising raw material prices, the company expects to report record revenue and profit in the fourth quarter and financial year ending Dec 31."
The counter ended at S$1.48, 4.23 per cent or six cents higher, on Tuesday.