KUALA LUMPUR (May 14): Supermax Corp Bhd's net profit rose 3.7% to RM34.62 million in the third financial quarter ended March 31, 2019 (3QFY19) from RM33.38 million a year ago, due to the commissioning of new replacement lines which resulted in higher output and greater efficiency.

This resulted in a higher earnings per share of 2.64 sen for 3QFY19 compared with 2.52 sen for 3QFY18.

Quarterly revenue also increased 10.4% to RM361.2 million from RM327.07 million a year ago.

The improved quarterly performance helped lifted the glove maker's net profit for the cumulative nine months (9MFY19) to RM108.7 million, an 11.8% increase from RM97.18 million a year ago, while revenue was up 14.2% to RM1.11 billion from RM975 million in 9MFY18.

In a filing with Bursa Malaysia today, Supermax said the global market for disposable gloves remains vibrant for both the natural rubber and nitrile variants.

"A slowdown in demand earlier in the year had raised concerns of an oversupply situation. However, the slowdown has not sustained as demand is again on the rise, driven by various factors including rising healthcare awareness and healthcare reforms mandating its use in the medical sectors, as well rising consumption in other non-traditional sectors such as the beauty-related sectors and household-use.

"On a year-to-year basis, global demand continues to grow at a rate of 8% to 10%. These positive factors continue to augur well for the group and the industry as a whole," it noted.

It added that construction of the group's 12th plant continues to progress steadily. "Once completed and the production lines commissioned, the new capacity will provide a significant boost to its total production capacity and lift both top-line and bottom-line performance."

Going forward, Supermax said it will continue to work on obtaining the licences and approvals for more of its contact lens products in more countries; further expanding its product range to include other types of lenses such as colour lenses and lenses made from newer and superior materials; and increasing market penetration for its products globally.

Supermax shares closed unchanged at RM1.48 today, with 4.23 million shares traded, giving it a market capitalisation of RM1.94 billion.