标签： Jamaica

Medical Disposables and Supplies Limited (MDS), a prominent distributor of pharmaceutical and medical supplies, has embarked on a strategic initiative to reverse its financial losses and return to profitability. Despite two consecutive years of net losses, the company has outlined a four-pronged approach to address its challenges and restore financial health. This strategy includes aggressive cost reduction, restoration of gross margins, debt reduction, and an expanded product offering in both its medical and consumer divisions.

MDS, which has been listed on the Jamaica Stock Exchange (JSE) for nearly 12 years, has seen significant growth in revenue, assets, and capital base since its listing. However, the company faced setbacks due to the write-down of COVID-19 backlogged products in its March 2024 financial year and rising operational financing costs in 2025. These challenges have necessitated a sharp focus on cost management and operational efficiency.

In its 2025 annual report, MDS highlighted progress in revenue growth, expanded product offerings, and stronger gross margins. Consolidated revenue grew by 5% to $3.88 billion, driven by increased sales volumes and market diversification. Gross profit rose by 22% to $876.43 million, though real growth was only 10.64% after accounting for inventory write-downs. Administrative expenses increased by 8% due to emergency repairs and higher security costs, while selling and promotional expenses were reduced by 4%.

However, MDS faced a significant jump in impairment charges on financial assets, from $14.97 million to $129.17 million, largely due to auditors increasing provisions for related party balances. This resulted in a consolidated operating loss of $151.66 million and a net loss of $281.06 million. Despite these setbacks, the company’s core business showed improvement, with revenue growing by 9% to $3.52 billion and gross profit rising by 38% to $787.29 million.

MDS CEO Kurt Boothe emphasized the company’s focus on cost containment, supplier renegotiations, and operational efficiency. The company has also expanded its presence in the general consumer market, with confectionery, beauty, and household lines contributing to revenue growth. MDS expects finance costs to decline in the coming months as it optimizes inventory levels and enhances collections performance.

The company’s first quarter (April to June) saw a 3% rise in consolidated revenue to $998.74 million but a net loss of $16.42 million. MDS’s asset base stood at $2.49 billion, with inventory at $1.04 billion and trade receivables at $626.19 million. The company last paid a dividend in January 2023 and is currently focused on financial recovery. MDS will host its annual general meeting on November 20 at its head office in Kingston.

Jamaica’s push for financial inclusion has spurred a remarkable rise in digital payments and mortgage activity, yet the nation’s small businesses face a crippling credit crunch, jeopardizing sustainable economic recovery. According to the Bank of Jamaica’s National Financial Inclusion Strategy (NFIS) impact report for the first half of 2025, digital transactions surged by 10.9% year-over-year, reaching 71.1 million, with utility bill payments leading the charge at 73.3% digital adoption—a figure more than double that of 2015. Simultaneously, new mortgage values climbed 13.5% to $44.4 billion, reflecting robust consumer confidence in the housing market. However, credit growth to micro, small, and medium-sized enterprises (MSMEs) plummeted to 5.8% from 27.4%, with micro-enterprises seeing a mere 0.1% increase. This stark divergence underscores a critical challenge: while consumer finance thrives, the backbone of Jamaica’s economy—small businesses—struggles to access vital capital. Dr. Norman Grant, first vice-president of the Small Business Association of Jamaica, highlighted collateral requirements as the primary barrier, urging the introduction of developmental loans and policy reforms to support MSMEs. The Bank of Jamaica, led by Senior Deputy Governor Dr. Wayne Robinson, is addressing these issues through initiatives like the rollout of a Central Bank Digital Currency (CBDC) and efforts to improve financial literacy and MSME digitization. Yet, the paradox remains: while digital payments generate valuable data on cash flow and financial behavior, mechanisms to translate this data into affordable credit for small businesses remain underdeveloped. As Jamaica’s financial inclusion strategy advances, bridging the gap between digital consumers and collateral-poor entrepreneurs will be essential to ensuring broad-based economic growth.

Jamaican manufacturers are being encouraged to enhance their packaging design to better compete with imported products, but the lack of local innovative packaging designers remains a significant hurdle. Tara Kisco, Country Manager at PriceSmart Jamaica, emphasized this during a Young Entrepreneurship Fireside Chat hosted by the Young Women and Men of Purpose (YWOP/YMOP) Foundation. She highlighted that packaging is often the first point of contact with consumers, serving as a crucial sales tool. PriceSmart, a membership-based retail warehouse club, has been working closely with suppliers to improve packaging so that local products are indistinguishable from imported ones. Kisco noted that proper labeling is equally important, with retailers like PriceSmart refusing to stock products that lack essential details such as origin, usage instructions, and manufacturer information. The Jamaica Bureau of Standards is also developing new labeling rules to help local goods meet export standards and strengthen their presence in overseas markets. While packaging design can be costly, Kisco stressed its critical role in consumer perception. She advised manufacturers to align packaging with the product’s intended price point, using bottled water as an example to illustrate how packaging can signal a product’s market position. Despite ongoing investments in local packaging, Kisco observed that imported packaging remains dominant, particularly for more creative and innovative solutions. In November 2023, Jamaica Packaging Industries Limited (JPI) completed a $2-billion investment in a new facility, significantly boosting its production capacity. This expansion aims to reduce Jamaica’s reliance on imported packaging, which currently accounts for over 60% of corrugated boxes used in the country. According to TradeEconomy.com, Jamaica’s total paper packaging imports reached US$49 million in 2023, with corrugated and non-corrugated cartons and boxes making up the majority. These figures underscore the strong demand for packaging, yet the creative and technical aspects of packaging design remain underdeveloped, limiting local manufacturers’ ability to compete effectively.