KUALA LUMPUR (Oct 27): RGT Bhd's net profit for the first quarter ended Sept 30, 2020 (1QFY21) soared 124.2% to RM4.26 million — a record high quarterly earnings — from RM1.21 million a year ago on the back of a surge in demand for hygiene care products such as soaps and sanitiser dispensers.
The hygiene care products manufacturer's quarterly revenue swelled 257.6% to RM41.76 million, from RM18.62 million in 1QFY20, according to a filing with the local stock exchange today.
Its earnings per share ballooned to 0.73 sen in 1QFY21 from 0.21 sen a year ago.
Improvement in operating scale and better efficiency were also achieved in 1QFY21, which resulted in a near doubling of profit before tax margin to 22%, from 13% a year ago.
RGT said, in a separate statement today, that the sales of automatic or hands-free soap and sanitiser dispensers picked up significantly in 1QFY21 and volume is expected to continue growing.
"Given that these automatic dispensers attract higher profit for each unit sold, earnings margins are expected to remain healthy for the foreseeable future," said RGT.
On prospects, the group expects the demand for its hygiene care products, which are widely used to improve general hygiene and to prevent and control the spread of infectious diseases amid the Covid-19 pandemic, to remain strong.
"Now that we are catching up with the strong hygiene care order book and our expansion programme is underway, management is now working towards growing the group. New customers and new products will be our key focus for the foreseeable future," said its executive director and chief executive officer Lim Seat Hoe.
In view of strong sales orders received from the US and Europe, RGT said it installed new production lines and machinery in the preceding quarter.
With the recent completion in land acquisition in Penang, the group can now commence with the expansion and will eventually have double the current production floor and warehousing space. This will enable RGT to cater to the future demand growth from its existing and new customers and to produce new products developed by its internal research and development department.
The company's capacity expansion is expected to be completed by Dec 31, 2021.
Shares in RGT were four sen or 6.61% higher at 64.5 sen today, valuing the company at RM377.81 million. Year-to-date, the counter has more than tripled from 17 sen.
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