Leading medical equipment supplier Medilines Distritbutors, Inc. [MEDIC] recorded earnings of Php170 million for 2021 from Php103 million in 2020, reflecting a record-breaking 65% year-on-year growth. A dual strategy of expanding its consumables product offerings as well as strong fiscal policies resulted to a double-digit growth in net profits at year-end December 2021.

Chairman Virgilio Villar affirmed that the company “is fully committed to boosting our fundamentals as well as continuously introducing quality life-saving innovations to the country.”

The company posted a gross profit margin of 21% this year compared to last year’s 17% and a net profit margin of 11% as compared to the previous 7%. It improved its credit position significantly by paying out the majority of its interest-bearing loans.

 

Positive trajectory

As for its debt-to-equity ratio (interest bearing debt over total equity), Medilines recorded an outstanding ratio of 0.33 from 1.84, while seeing an improvement in its balance sheet liabilities.

Operating expenditures also benefited from implementing cost improvements, with 13% operating margin recorded for 2021 compared to 11% over the same period in 2020.

While the pandemic contributed to the growth in company sales because of the surge in demand for medical equipment and supplies, other more important factors include the government’s initiative to advance medical facilities; the Filipino’s realization of the importance of healthcare; and the implementation of the Universal Healthcare Bill.

Securing the company’s future

As of the first quarter of 2022, the Company has already has Php1 billion worth of cancer therapy projects that it is working on through the year, according to Patricia Yambing, Medilines President and Director. “New and cutting-edge medical equipment is set to be delivered to, among others, the Bicol Regional Training and Teaching Hospital, the Northern Mindanao Medical Center, the Mariano Marcos Memorial Hospital and Medical Center, and the Philippine Children’s Medical Center” she said.

In the next few months, Medilines will beef up its consumables product segment, in addition to other initiatives such as maintaining partnerships with current principals, the exploration of new partners that will deliver advanced medical technologies, excellent customer service, and expansion of its private institution portfolio.

This press release may contain “forward-looking statements” which are subject to a number of risks and uncertainties that could affect the MEDIC’s business and results of operations. Although MEDIC believes that expectations reflected in any forward-looking statements are reasonable, it can give no guarantee of future performance, action or events.