Hurricane Beryl disrupts drug supply and customer demand for R. A. Williams in second quarter



New Junior Market firm R.A. Williams, in unaudited financial results for the second quarter ended October 31, 2024, reported gross profit growth of by 14 per cent , mainly driven by the introduction of new products across several product lines.

Nonetheless the company recorded a net loss before tax for the quarter of $13.9 million, compared to a net loss of $792,000 for the same period in 2023, the prior year.

Operating expenses ratio for this quarter stood at 45 per cent, up from 38 per cent in the prior year, an increase primarily attributed to the right of use costs related to a new location at New Brunswick Village, as well as higher technology, staffing, and distribution expenses.

R.A. Williams achieved revenue of $367 million representing a 0.95 per cent increase compared to the same quarter of the previous year.

During this period, we encountered significant challenges, including supply constraints in certain product categories and the effects of Hurricane Beryl, which disrupted operations for many of key customers, particularly along the south coast.

There was an increase in total assets, to $1.4 billion which management said reflected strategic investments in infrastructure, including the opening of the new office and warehouse at the beginning of the quarter.

They stated, “These investments position us to expand our partnerships with pharmaceutical manufacturers and further strengthen our business.”

“We anticipate revenue growth driven by the reintroduction of key products under our newly added Fourrts line, expected early in the third quarter. During the quarter, we add several new products to our portfolio.

Products introduced included ColdStop (an over-the-counter day and night cold and f lu pack), GasStop (an over-the-counter antacid), and DandZap Plus (a prescription shampoo for dandruff and seborrheic conditions), in partnership with Canadian-based Ryvis Pharma.

In its IPO prospectus, which was issued in 2023, the company described itself as the only publicly listed pharmaceutical distribution company in Jamaica with more than half of its Board of Directors as trained and licensed pharmacists. It reported distributing over 130 products, serving over 700 customers across the island.

It also supplies critical drug items to the National Health Fund that are offered to the public and through the NHF’s Pharmacy Services Division. Contracts won from the NHF include a three-year contract worth USD 3.2 million for the 2023-2026 period.ompany estimates, will not exceed $47,000,000.00 inclusive of General Consumption Tax

For the year ended April 30, 2023, total sales amounted to 41.4 billion, crossing the billion-dollar mark for the first time and representing 41.6 per cent growth over the prior year and a CAGR of 35.2 per cent over the financial years 2019 -2023.

The IPO asserted that R.A. Williams “has established exclusive distribution agreements with high-profile manufacturers, primarily from India and Bangladesh. These exclusive agreements are in place for 63 per cent of the manufacturers we currently represent.”

The family-owned pharmaceutical distributor targeted raising $400 million, which it wanted in order to eliminate approximately $113,721,658.00 of related party loans and approximately $190,928,205.00 will be used to eliminate short-term loans. Additionally, the expenses of the invitation were estimated at $47 million.

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