Medtecs Q1 net profit jumps to US$13.2 million as PPE demand 'remains elevated'

CATALIST-LISTED protective gear maker Medtecs International Corp more than tripled its first-quarter earnings year on year, as demand for its output "remains elevated".

Net profit rose to US$13.2 million for the three months to March 31, up from US$3.67 million in the year-ago period, according to unaudited results out on Thursday. Revenue rose 5.9 per cent on year, to US$42.2 million, amid the raging Covid-19 pandemic.

The board noted that "it will be a challenge" for its full-year performance to bust the record revenue and profit of 2020. Still, it expects turnover to grow quarter on quarter for the April-to-June period, barring unforeseen circumstances.

The spread of new virus variants has driven higher-volume orders for Medtecs, and the group has ramped up engagements for group purchases, the board disclosed.

Medtecs is also building its retail arm through e-commerce platform Amazon, which the board said "will not only bolster its revenue stream but will generate more recognition and confidence which will help the group secure more long-term orders".

Meanwhile, the group is working towards constructing a personal protective equipment manufacturing facility, which it said would strengthen its position as a stockpile provider.

Shares ended Thursday at S$1.03, down by S$0.04 or 3.74 per cent, before the news.