Demand for the Group’s personal protective equipment (PPE) has lowered compared to previous quarters due to completion of stock-piling exercises by its existing customers in 2020, the subsequent inventory adjustment attributable to certain customers, and the stabilisation of the supply and prices of the PPE market globally.
Profitability also declined substantially due to lower revenues, a shift in the Group’s revenue stream to lower-margined OEM items, and higher selling and distribution costs.
Medtecs is investing in building its “Medtecs” and “CoverU” brands and in advertising and distribution of its products to increase Business to Consumer (B2C) sales through major chain stores, pharmacies and supermarkets. In addition, the company is making full use of e-commerce platforms such as Amazon, Alibaba, Shopee and Medtecs Express through its business model of “Source and Sell Globally” to further promote growth in its retail business.
For more stories about where the money flows, click here for our Capital section
See also: Keppel Pacific Oak US REIT’s 1QFY2025 distributable income falls by 19.3% y-o-y to US$9.6 mil
In addition, the company remains active in securing stock-piling government contracts and has several ongoing stock-piling projects for PPEs and military uniforms in the Philippines. As part of its growth strategy, Medtecs plans to set up a glove manufacturing facility in Cambodia to expand its production capacity and product offering with a view to ultimately building a resilient global PPE supply chain.
