Brazilian drug testing jumps Psychemedics profits 240%
Photo/Emily Micucci
Psychemedics headquarters building in Acton.
Thanks to growth in the Brazilian market, employment drug testing company Psychemedics reported a 240-percent increase in net income over the same period last year.
The Acton company posted $2.7 million in profits for the third quarter of 2016, up from $796,000 over the same period the year before. Psychemedics also reported a year-over-year revenue increase of 67 percent to $11.8 million, up from $7.1 million in the third quarter of 2015. Revenue for the nine months ended Sept. 30 was up 35 percent year-over-year, and profits for that same time period increased 226 percent, according to the company.
This growth was driven by the company’s presence in Brazil, where Psychemedics products are now being used to test Brazilian drivers for drug abuse. The testing started in the second quarter, according to Raymond C. Kubacki, chairman and CEO of Psychemedics. Citing a study from the Technology Institute for Road Safety, Kubacki said Brazil has also benefitted -- accidents involving trucks on federal roads declined 38 percent between March and July.
The company also reported $4.1 million in cash and $6.7 million in working capital and $5.2 million in total outstanding equipment financing.
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