Medilines’s income in 2021 surges 65%

MEDICAL equipment supplier Medilines Distributors Inc. said its income in 2021 rose 65 percent to P170 million from P103 million in 2020.

The company said its dual strategy of expanding its consumables product offerings as well as strong fiscal policies resulted to a double-digit growth in net profits.

Medilines Chairman Virgilio B. Villar said  the company “is fully committed to boosting our fundamentals as well as continuously introducing quality life-saving innovations to the country.” Medilines’s share price closed at P0.66 per share on Monday.

Medilines said it posted a gross profit margin of 21 percent, higher from the previous year’s 17 percent and a net profit margin of 11 percent as compared to the previous 7 percent. It improved its credit position significantly by paying out the majority of its interest-bearing loans, the company said. 

As for its debt-to-equity ratio, which is the company’s 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 percent operating margin recorded for 2021 compared to 11 percent from the previous year. 

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 law (Republic Act 11223), the company said.

As of the first quarter of 2022, Medilines already has P1-billion worth of cancer-therapy projects that it is working on through the year, according to Maria Patricia Dolor V. Yambing, the company’s president and director.

Yambing added that the company is set to deliver “new and cutting-edge” medical equipment 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.

In the next few months, Medilines said it 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.