Medilines says P2-billion sales target on track

MEDILINES Distributors, Inc. expects to exceed last year’s sales, saying it is on track to hit P2 billion in its 20th year in business.

In a press release on Tuesday, the medical equipment provider said its forecast of surpassing its “record financial performance” last year was based on the continued expansion of its consumables business.

It also cited the completion of public and private healthcare facilities ahead of its founding anniversary.

“Our goal is to push sales to P2 billion this year,” said Medilines Chairman Virgilio Villar.

In 2021, the company recorded gross revenues of P1.59 billion, up 8.2% from P1.47 billion previously.

Medilines reported a 65% year-on-year growth in net profit to a record P169.63 million last year.

Mr. Villar said that due to quarantine restrictions, some projects were suspended and the company’s operations were affected, slowing down its ability to collect from customers.

“We expect sales to improve this year in the wake of increased vaccinations and more relaxed mobility restrictions,” he said.

In the first quarter, Medilines recorded a net profit of P28.47 million, more than three times higher than the P8.14 million posted a year ago.

Medilines President and Chief Executive Officer Maria Patricia Dolor V. Yambing said that at the end of the first quarter, the company was already working on P1-billion worth of purchase orders.

“We are confident that sales will continue to increase post-pandemic. The health crisis caused by COVID-19 (coronavirus disease 2019) highlighted the need for the government, the private sector, and individuals to put a premium on healthcare,” Ms. Yambing said.

The company also said that it is further expanding its consumables product segment with the completion of its 1,282-square meter warehouse which will be used to store consumables and medical machines.

Medilines’ primary purpose is to establish, conduct and maintain the business of trading and distribution of medical devices.

It sources and maintains a portfolio of critical medical equipment from multinational medical device companies that cater to the specialized care segments.

Its customers are primarily the Philippine government through the Department of Health and local government units, and private healthcare facilities such as hospitals, clinics and diagnostic centers.

Mr. Villar is optimistic that Medilines’ improving financial performance will eventually be reflected in the market value of its stock, which has fallen below its initial public offering price.

In the stock market on Tuesday, Medilines shares closed unchanged at P0.58 apiece. — Justine Irish DP. Tabile