UMediC 2Q profit up 45% q-o-q on higher demand for medical devices, consumables

Mar 6, 2023 | News | 0 comments

KUALA LUMPUR (March 6): UMediC Group Bhd’s net profit stood at RM2.91 million against its revenue of RM12.52 million for its second quarter ended Jan 31, 2023 (2QFY2023).

Earnings per share for the quarter was 0.78 sen, said the medical devices and consumables manufacturer and distributor in a filing with Bursa Malaysia.

On a quarter-on-quarter basis, UMediC’s net profit rose 45.38% to RM2.91 million from RM2 million, as revenue rose 10.64% to RM12.52 million from RM11.31 million.

For its first half of 2023 (1HFY2023), the group recorded a net profit of RM4.9 million on the back of RM23.83 million in revenue.

The better results were due to higher demand for medical devices and consumables from public and private hospitals as well as healthcare service providers, it said.

This was supported by lower cost of sales and other expenses in the quarter.

In addition, there was also an increase in the sale of HydroX series prefilled humidifiers, and AirdroX series inhaler spacers which began commercialisation in June 2022, it added.

“UMediC continues to deliver impressive business performances since its listing, backed by the robust demand for medical devices and consumables. The sustained demand has been fuelled by the rising global awareness of health,” said UMediC executive director and chief executive officer Lim Taw Seong.

“The group also benefited from the increasing healthcare expenditure by the Malaysian government,” Lim said.

The group is constructing a new factory building in Batu Kawan, Penang, as well as establishing marketing and distribution offices in Kuala Lumpur and Johor.

Further, UMediC is developing and commercialising several new products under its own brand, namely sterile water for inhalation, prefilled nebulisers, digital oxygen flowmeters and humidifier humidity sensors.

UMediC’s share price closed four sen or 4.91% higher at 85.5 sen, compared with its initial public offering price of 32 sen in July 2022. Its market capitalisation stood at RM319.7 million.

Edited by Adam Aziz