Thursday 28 Mar 2024
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KUALA LUMPUR (Nov 21): Supermax Corp Bhd's net profit for the first quarter ended Sept 30, 2017 (1QFY18) grew 42.81% to RM27.9 million, from RM19.54 million a year ago, as the group saw improved efficiency and productivity after refurbishment of its older lines and streamlining of work processes.

The group's earnings per share rose to 4.19 sen for the quarter under review, from 2.89 sen previously.

In its quarterly report to Bursa Malaysia, the glove maker — the fourth largest in the country in terms of capacity — said it recorded a revenue of RM312.02 million for 1QFY18, equivalent to a 15.99% growth from last year's RM269 million.

Supermax said the higher revenue was attributable to higher average selling prices of its products in response to increased raw material prices as well as a stronger US dollar versus ringgit.

Moving forward, Supermax said the global demand for both natural rubber and nitrile gloves remains strong with healthcare awareness continuing to rise, increasing regulation of the healthcare sector and ever higher healthcare spending in both the public and private sectors driving demand growth.

These positive factors, according to the group, continue to augur well for its business and the industry as a whole.

"The Chinese government's concerted efforts to clamp down on the vinyl glove industry in China [have] also proven to be a boon for the natural rubber and nitrile glove producers as demand has shifted to them. The clampdown is due to the highly polluting nature of vinyl glove plants which do not comply with China's environmental regulations," it said.

"In line with our continuous improvement efforts, we are refurbishing, rebuilding and modernising our older manufacturing plants to gain maximum efficiency in our production capabilities," it added.

As at 2.38pm today, Supermax was trading at RM2.03, down three sen or 1.46%, giving it a market capitalisation of RM1.31 billion.

 

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