Chairman’s Message

2021 Annual Report - Medical Disposables & Supplies Limited CHAIRMAn'S STATEMENT

The Financial Year ended March 31, 2021, was a year of extraordinary challenges as the full impact of the Global COVID 19 Pandemic on the Jamaican Economy became evident. The continued volatility in the exchange rate of the Jamaican dollar in relation to its United States counterpart, the reduction in government expenditure and the combined effect on aggregate demand, all contributed to the economic environment which prevailed during the period under review. Notwithstanding these adverse conditions which mainly affected the first two quarters of the financial year, the Company ended the year with mixed financial results.

REVENUES recorded for the period under review was $2.42 billion a marginal reduction of $ 58.3 million or 2.4% when compared to the previous year.

GROSS PROFIT increased by $40 million or 7.1% totaling $598.9 million in 2021 compared to $558.9 million in 2020.

THE YEAR AHEAD…

As we go forward into the new financial year, we will continue to explore opportunities to widen our product range, particularly in the Medical and Consumer Divisions, in keeping with our business strategy. Additionally, it is of great importance for the Company to focus attention on its cost reduction and cost management efforts. At the same time, it is expected that the recent acquisition of a related business activity will not only allow for the increase in overall growth in our business operations, but will also strengthen and consolidate our position in the Medical and Health Sector. We maintain a positive outlook for the year ahead, despite the current challenges which we face but wish once again to recommit ourselves to maintaining a high standard of financial performance, to improving our operational efficiency, as well as to increase shareholder value by providing an appropriate return on investment. As we complete another year of operation, I use this opportunity on behalf of the Board of Directors to express our appreciation to the members of the MDS team for their commitment and dedication, and to our customers for their loyalty and continued support during the year. Finally, I wish to thank the members of the Board of Directors for their stewardship and guidance in the transition from a family operated business enterprise to a more formal corporate culture and the adoption of a robust Corporate Governance Structure.

Winston Boothe

Chairman

TOTAL EXPENSES rose by 9.86 % to close the year at $590.8 million compared to $523.4 million in 2020. This increase reflects expenses relating to: i. The acquisition of an existing business operation. ii. One off initial costs to establish new banking arrangements in place of the previous arrangement. iii. Foreign exchange losses amounting to $11 million resulting from exchange rate fluctuations in the foreign exchange market.

GAIN ARISING ON BUSINESS

ACQUISITION amounting to $62.08 million.

NET PROFIT AFTER TAX

was $69.6 million compared to $34.6 million in the previous year.

EARNINGS PER SHARE

of 0.26 cents compares with 0.13 cents in the previous year.