Product expansion boosts Medilines earnings by 65%

MANILA, Philippines — Medical equipment supplier Medilines Distributors Inc. earned P170 million last year, up 65 percent from P103 million in 2020, on the back of its expanded product offerings and prudent budget policies.

Medilines chairman Virgilio Villar said the company is fully committed to boosting its fundamentals, as well as continuously introducing quality life-saving medical innovations.

He said while the pandemic contributed to higher company sales because of the surge in demand for medical equipment and supplies, other factors included the government’s initiative to advance medical facilities, Filipinos’ realization of the importance of healthcare, and the implementation of the Universal Healthcare Law.

The company said it would continue to beef up its consumables product segment, in addition to other initiatives such as maintaining partnerships with current principals.

The company will also explore possible partnerships to deliver advanced medical technologies, excellent customer service, and expansion of its private institution portfolio.

In 2021, the company posted a gross profit margin of 21 percent compared to the previous year’s 17 percent, and a net profit margin of 11 percent compared to the previous seven percent. It likewise improved its credit position by paying out the majority of its interest-bearing loans.

For its debt-to-equity ratio (interest bearing debt over total equity), Medilines recorded a ratio of 0.33 from 1.84, while seeing an improvement in its balance sheet liabilities.

In terms of budget policies, the company implemented prudent spending.  Operating expenditures benefited from implementing cost improvements, with 13 percent operating margin recorded for 2021 compared to 11 percent over the same period in 2020.

As of the first quarter of 2022, the company already has P1 billion worth of cancer therapy projects that it is working on through the year, said Patricia Yambing, Medilines president and director.

Thus, Medilines is set to deliver new equipment to different hospitals in the country.