The Medical Developments International (ASX: MVP) share price is lower after the company released its full-year results for FY21.
At the time of writing, shares in the company are trading for $3.93 – down 2.48%. The ASX All Ordinaries Index (ASX: XAO), meanwhile, is 0.48% higher.
Let's take a closer look at today's announcement.
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Medical Developments share price slumps despite 27% gross profit jump
- Revenue increased 12.1% on the prior corresponding period (pcp) to $25.6 million and gross profit leaped 27.4% to $19.1 million.
- A net profit after tax (NPAT) of $379,000 in FY20 turned into a $12.6 million loss for the period. This was driven mostly by a $9.6 million rise in administration expenses and a new $8.9 million impairment expense.
- Net cash outflow from operating activities of $8.9 million.
- Basic loss per share of 18.4 cents. In the pcp it was a gain of 0.58 cents per share.
- No full-year dividend was paid, as was the case in FY20.
What happened in FY21 for Medical Developments
The first significant announcement of Medical Developments in FY21 was the announcement of its expansion into Europe. The Medical Developments share price jumped 14% on the news at the time. Chair David Williams called the news a "turning point" for the company.
In October, Medical Developments appointed Brent McGregor as CEO of the company. He previously worked for CSL Limited (ASX: CSL).
The company also acquired the distribution rights to its product in Australia in the financial year and implemented a capital raising scheme.
Medical Developments also said the COVID pandemic affected sales of its pain relief and respiratory products. This was because fewer people were out and about (and therefore getting injured) and there was less cold and flu in the community due to border restrictions.
What did management say?
McGregor gave the following comments on today's results.
I am as confident as I was in November in the potential of MVP. Promising work has continued on our next generation product ("Selfie") and we are beginning to think of other innovations to support strategic sales growth.
Finally, I acknowledge the resilience and commitment of the (now international) MVP team who have worked extraordinarily hard in a difficult and uncertain time to maintain the supply of our important products to patients.
What's next for Medical Developments
Looking forward, Medical Developments anticipates "strong sales growth" in FY22. It says it will be driven by its expanding European presence and a "renewed focus" on the Australian market.
More updates will be provided at the October AGM. Despite this outlook, the Medical Developments share price is slipping today.
Medical Developments share price snapshot
Over the past 12 months, the Medical Developments share price has decreased 34.2%. Year-to-date, it is down an even greater 40.8%.
Medical Developments has a market capitalisation of $287 million.
