LISTED firm Medilines Distributors, Inc. expects 43% revenue growth from dialysis consumable products and better margins on its planned expansion into the dialysis consumable market.
“There is a significant opportunity to service the dialysis market in the Philippines, and Medilines is moving quickly to be a leader not just on the equipment side, but also in the much larger consumables side of the market,” Medilines Chairman Virgilio Villar said in a press release.
For full-year 2021, the company recorded revenues of P197 million from its dialysis consumables product line. By end-2022, it expects a growth of 43%.
Medilines, which trades and distributes medical devices, said it committed to fast-track the expansion of its dialysis consumable market, which it projects to boost its revenues and produce higher margins.
“This will be a significant driver of our company’s growth moving forward. More importantly, this is well in line with our mission to make quality healthcare more accessible to Filipinos,” Mr. Villar said.
Meanwhile, the company announced a share buyback program of up to P100 million, banking on Medilines’ strong fundamentals and growth prospects.
It said the program is meant to enhance shareholder value and to show confidence in the company’s value and prospects.
“We are very focused on business strategies that will deliver profitable and sustainable growth over time,” Medilines President and Chief Executive Officer Patricia V. Yambing said.
“In addition, we are working to enhance shareholder value through regular dividends declaration, the recently announced share buyback program, and other investor relations initiatives,” she said.
Since its listing on the stock exchange, Medilines has declared and paid two cash dividends amounting to P25 million or 15% of the company’s net income last year.
In the second quarter, Medilines recorded a 42.9% decrease in its attributable net income to P52.48 million due to the continuing impact of the pandemic on its business. It reported a 3.5% decline in its second-quarter revenue to P595.01 million.
In the first six months, its attributable net profit decreased by 19.1% to P80.96 million from P100.05 million.
On the stock exchange on Thursday, shares in Medilines lost four centavos or 5.13% to P0.74 apiece. — Justine Irish D. Tabile