HARARE, September 17 (The Source) – Pharmaceutical products distributor Medtech on Thursday reported that it had narrowed its losses to $90,000 in the half year to June from $233,000 last year, on improved performance of its manufacturing unit.
Revenue during the period was up six percent to $6,5 million while the group’s manufacturing segment, Chicago Cosmetics, registered a 75 percent growth in revenue to $1,2 million.
The unit recorded high gross margins with gross profit at 21 percent compared to 11 percent last year.
In a statement accompanying financial results on Thursday chairperson Rose Mazula said the company had instituted stringent credit control resulting in a decreased but healthier and manageable debtor book.
Accounts receivable stood at $3,4 million compared to $3,5 million
“Though credit control has been improved it must be noted that debtors collection performance remains volatile and large customers continue to delay payments,” Mazula said.
“A few customers are having difficulties and this might have a negative effect within the coming six months.”
Sales for the group’s Medtech Distribution and Smart Retail were down two percent driving down its revenue to $5,2 million from $5,4 million.
As a part of a raft of cost cutting measures the group announced plans to reduce its staff compliment from 140 to 90 by year end.