Medical Disposables and Supplies snags 3M distribution deal
Healthcare and consumer products distributor, Kingston-based Medical Disposables and Supplies Limited (MDS), has been appointed as a distributor for the United States-based technology company 3M, expanding its portfolio in disposable supplies and medical instruments.
3M is a US$27 billion diversified company and one of 30 companies that make up the Dow Jones Industrial Average.
While there is no comparative data for Jamaica, the market for medical disposables and supplies is considered a US$44.1 billion business in the United States, and according to Freedonia Industrial Studies, US demand for the products will rise 4.2 per cent annually to US$54.1 billion in 2020.
MDS General Manager Kurt Boothe told the Financial Gleaner on Friday that local markets are growing as well, noting that "one of our strategies is to diversify our product lines. While our number-one segment is pharmaceuticals, we want to diversify in medical supplies and consumer goods. Medical supplies is one of our strengths. It's important that we expand in this area with a top brand and one which is well respected."
He said that 3M would allow the company to bring clients "disposable supplies and medical instruments of the highest quality as we continue to bring world-=standard offerings to Jamaica".
Boothe did not share the value of the 3M deal, but noted that his company has, in preparation for offering more product categories, invested in excess of $100 million in retooling, new infrastructure, and new systems for operations over the past two years.
Some of the results, he noted, can be seen in the 19 per cent increase in revenues to $2 billion at year end March 2018.
Boothe said that growth is expected to continue. "We are already ahead of our year-on-year quarterly revenue for 2017, and we want to maintain that pace," he said.
According to Boothe, "Our consumer division, which is our newest division established in April 2017, is expected to grow by 50 per cent this financial year."
MDS is eyeing new niche areas across the three segments of its business, namely pharmaceuticals, medical disposables, and consumer goods, hence its deal with 3M and its push in consumer goods and operational retooling.
THINKING INSIDE THE BOX
"We have made a company-wide investment as part of our strategic initiative called 'thinking inside the box'," said Boothe.
"This concept has been centred around continual retooling and reinvestment in all areas of the company to establish a base for long-term, sustained growth. We have invested in the physical facility, organisational restructuring, IT (information technology) capabilities, and new systems for the company to construct the platform for our team to grow the organisation," he said.
At March year end, MDS crossed the $2 billion mark in revenues for the first time. The company made net profit of $109 million, up from $100 million the year before.
Total assets grew by 21.4 per cent, or $260.2 million, from $1.21 billion to $1.47 billion.
MDS was founded by managing director Myrtis Boothe in 1999. The company listed on the junior market of the Jamaica Stock Exchange in December 2014.