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R.A. Williams Distributors Limited made a net loss of $1.9 million for the first quarter ended July, reversing a profit of $24 million for the same period last year. The company attributed the downturn to higher expenses, including its sponsorship of a major pharmaceutical conference.
The decline in earnings came despite nearly eight per cent growth in revenue.
CEO Audley Reid said the loss was expected, given its relationship-building initiative.
“We were planning a major participation in the annual pharmaceutical conference in early September. This was the 40th anniversary of the pharmaceutical conference and we were premier sponsors. So, we had a lot of input going into that,” Reid told the Financial Gleaner.
Still, he said the loss was a little less than expected.
Administrative expenses rose to J$105.3 million, from J$89.5 million, while selling and distribution costs climbed to $67.8 million, from $52.4 million.
Reid is optimistic about the company’s trajectory, pointing to strong performance in the early weeks of the second quarter.
“The second quarter started out really well. We saw a 40-something per cent growth for the first month in terms of revenue. So, we expect that these kinds of growth levels will continue over the next couple quarters as we continue to leverage the new products that we’ve rolled out,” he said.
R.A. Williams has recently expanded its distribution network and product offerings, securing exclusive rights to distribute Fourrts India Laboratories products in Jamaica. It also became the second distributor for Canada-based Ryvis Pharma.
“We’re basically taking market share from the current distributors,” Reid said. “The market has responded well, and we are continuing to see improvements in the sales for those products month after month after month. It’s just continuing to grow, so it will be up from here.”
Reid said the company is focused on returning to profitability in coming quarters.
“That’s what we’re working at. There are always unforeseen circumstances. We can’t always predict exactly what will happen. But, based on what we are seeing, we expect to continue sales growth and we expect to see profitability over the next few quarters,” he asserted.
R.A. Williams is banking on its expanded portfolio and market penetration to drive growth and profitability through the remainder of the fiscal year.
Recently, the company, which has been trading on the junior stock market for just over one year under the symbol RAWILL, announced the departure of Sales Manager Karlene Gregg, who has been replaced in the interim by Kimroy Williamson, effective July 7; while as of August, Credit and Collections Manager Elaine Gordon is set to depart on September 30.
“Her employment contract was coming to an end and she decided … she wanted to take a different trajectory,” Reid said regarding Gordon. “She did an amazing job formalising our credit and receivables management,” he said.
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