Medtecs slides into red for H1 2022 on lower average selling price for PPE and face masks

MEDTECS International reported a loss of US$3.7 million in H1 2022 from a profit of US$19 million a year prior on lower average selling price of personal protective equipment (PPE) and face masks.

Revenue for the period fell 63 per cent to US$31.6 million from US$85.3 million on the decline in demand and average selling price of PPE and face masks. Inventory build-up of existing customers and sales in H1 2021 also contributed to the decline.

The company expects a continued decline in demand for PPE and face masks as the world recovers from pandemic-related lockdowns and disruptions. Medtecs is forecasting to start commercial operations of its fully integrated manufacturing facility for nitrile gloves in Cambodia some time in Q3 2022. Vertical integration of the face mask production facility in the Philippines has also been completed, ensuring product quality and minimal supply chain disruptions.

Medtecs has several stockpiling contracts with the Philippine government for PPE and military uniforms. The company is also expecting to launch high-end medical devices such as handheld ultrasound devices with a local distributor and developer in the Philippines.

Shares of Medtecs closed down 1.1 per cent or S$0.002 to S$0.186 on Friday (Aug 12).